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Beat 'em or join 'em? Export subsidies versus international research joint ventures in oligopolistic markets

Abstract:

We compare adversarial with cooperative industrial and trade policies in a dynamic oligopoly game in which a home and foreign firm compete in R&D; and output and, because of spillovers, each firm benefits from the other's R&D.; When the government can commit to an export subsidy, such a policy raises welfare relative to cooperation, except when R&D; is highly effective and spillovers are near-complete. Without commitment, however, subsidisation may yield welfare levels much lower ...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1111/1467-9442.00174

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author
More by this author
Institution:
University College Dublin
Role:
Author
Publisher:
Blackwell Publishing Publisher's website
Journal:
Scandinavian Journal of Economics Journal website
Volume:
101
Issue:
4
Pages:
577-596
Publication date:
1999-12-01
DOI:
EISSN:
1467-9442
ISSN:
0347-0520
Language:
English
Keywords:
Subjects:
UUID:
uuid:6274decf-ded3-4d33-a489-ef23cfe53c90
Local pid:
ora:2134
Deposit date:
2008-06-27

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