Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159492
Authors: 
Bacchiega, Emanuele
Lambertini, Luca
Mantovani, Andrea
Year of Publication: 
2008
Series/Report no.: 
Quaderni - Working Paper DSE 651
Abstract: 
In an extended version of d'Aspremont and Jacquemin's (1988) R&D competition model we find a region where the game is a prisoner's dilemma: firms still invest in R&D but they would obtain a higher profit by not investing at all. In a repeated version of the game, we prove that firms implicitly tend to collude and refrain from investing in R&D, thus decreasing social welfare. When this happens, inviting firms to form a joint venture appears as a remedy to the lack of innovation efforts rather than the excess thereof.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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