Semenov, AggeyTondji, Jean-Baptiste2020-04-062020-04-062019http://hdl.handle.net/10393/40317https://doi.org/10.20381/ruor-24550We consider a setting where firms in the first stage invest in cost-reducing R&D. In the market stage, one firm sets a quantity, and another sets a price. We prove that the quantity-setting firm invests more in R&D, has a lower price, and produces higher quantity than the price-setting firm. We also consider welfare implications.enCournot-Bertrand modelproduct differentiationR&DWelfareWorking Paper