R&D COOPERATION BETWEEN IMPATIENT RIVALS |
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| Authors: | Zhiyong Yao Bingyong Zheng |
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| Affiliation: | 1. School of Managment, Fudan University, Shanghai, China;2. School of Economics, Shanghai University of Finance and Economics, Shanghai, China |
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| Abstract: | We analyse R&D cooperation between product‐market competitors within a repeated‐game framework with imperfect monitoring. When firms are patient enough, R&D cooperation is attainable without product‐market collusion. However, if firms are less patient, we show that collusion in the product market is necessary to sustain R&D cooperation. Moreover, consumers can be better off when collusion is allowed in this case. |
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| Keywords: | collusion imperfect monitoring R&D cooperation C72 D82 L24 |
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