Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92735
Authors: 
Matsumura, Toshihiro
Matsushima, Noriaki
Year of Publication: 
2009
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 742
Abstract: 
This paper investigates an asymmetric duopoly model with a Hotelling line. We find that helping a small (minor) firm can reduce both social and consumer surplus. This makes a sharp contrast to existing works showing that helping minor firms can reduce social surplus but always improves consumer surplus. We also investigate R&D competition. We find that a minor firm may engage in R&D more intensively than a major firm in spite of economies of scale in R&D activities.
Subjects: 
product selection
minor firm
R&D
JEL: 
L13
O32
R32
Document Type: 
Working Paper

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