EconStor >
Max Planck Institute for Research on Collective Goods, Bonn >
Preprints of the Max Planck Institute for Research on Collective Goods >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26918
  
Title:Incentives for process innovation in a collusive duopoly PDF Logo
Authors:Engel, Christoph
Issue Date:2007
Series/Report no.:Preprints of the Max Planck Institute for Research on Collective Goods 2007,6
Abstract:Two suppliers of a homogenous good know that, in the second period, they will be able to collude. Gains from collusion are split according to the Nash bargaining solution. In the first period, either of them is able to invest into process innovation. Innovation changes the status quo pay-off, and thereby affects the distribution of the gains from collusion. The resulting innovation incentive is strictly smaller than in the competitive case.
Subjects:Duopoly
Collusion
Innovation Incentives
JEL:D43
K21
L13
O31
Document Type:Working Paper
Appears in Collections:Preprints of the Max Planck Institute for Research on Collective Goods

Files in This Item:
File Description SizeFormat
551497998.PDF415.55 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/26918

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.