Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/159230 
Year of Publication: 
2000
Series/Report no.: 
Quaderni - Working Paper DSE No. 389
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
We analyse the problem of the choice of the market variable in a model where firms activate R&D investments for process innovation. We establish that (i) firms always choose the Cournot behaviour; and (ii) there exists a set of the relevant parameters where a benevolent social planner prefers quantity setting to price setting. This happens when the marginal cost of R&D activities is relatively low while technological externalities are relatively high. In this situation, the conflict between social and private preferences over the type of market behaviour disappears.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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