Cooperating in R&D and Advertising
| dc.contributor.author | Pourkarmi, Parisa | |
| dc.contributor.author | Atallah, Gamal | |
| dc.date.accessioned | 2020-04-06T15:03:09Z | |
| dc.date.available | 2020-04-06T15:03:09Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | This paper studies the impact of cooperative R&D and advertising on innovation and welfare in a duopolistic industry. The model incorporates two symmetric firms producing differentiated products. Firms invest in R&D and advertising in the presence of R&D spillovers and advertising spillovers. Advertising spillovers may be positive or negative. Four cooperative structures are studied: no cooperation, R&D cooperation, advertising cooperation, R&D and advertising cooperation. R&D spillovers and advertising spillovers always increase innovation and welfare if products are highly differentiated and/or spillovers are sufficiently high. The ranking of cooperation settings in terms of R&D, profits and welfare depends on product differentiation, R&D spillovers and advertising externalities. Firms always prefer cooperation on both dimensions, which is socially beneficial only when advertising and R&D spillovers are sufficiently high. | en_US |
| dc.identifier.uri | http://hdl.handle.net/10393/40319 | |
| dc.identifier.uri | https://doi.org/10.20381/ruor-24552 | |
| dc.language.iso | en | en_US |
| dc.subject | R&D | en_US |
| dc.subject | advertising | en_US |
| dc.subject | cooperation | en_US |
| dc.subject | spillovers | en_US |
| dc.subject | product differentiation | en_US |
| dc.subject | innovation | en_US |
| dc.subject | marketing | en_US |
| dc.title | Cooperating in R&D and Advertising | en_US |
| dc.type | Working Paper | en_US |
