Titel: | R&D Incentives in Vertically Related Markets |
Autor: | Memar, Ahmad Reza Saboori |
Weitere Verfasser: | Götz, Georg |
Veröffentlicht: | 2013 |
URI: | https://archiv.ub.uni-marburg.de/es/2024/0170 |
DOI: | https://doi.org/10.17192/es2024.0170 |
URN: | urn:nbn:de:hebis:04-es2024-01709 |
ISSN: | 1867-3678 |
DDC: | 330 Wirtschaft |
Publikationsdatum: | 2024-01-03 |
Lizenz: | https://creativecommons.org/publicdomain/mark/1.0 |
Schlagwörter: |
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process innovation, bilateral oligopoly, product differentiation, interbrand and intrabrand competition, vertical relations, research and development |
Summary:
This paper focuses on incentives to invest in research and development (R&D) in vertically related markets. In a bilateral duopoly setup, we consider how process R&D incentives of the firms in both upstream and downstream market depend on the intensity of simultaneous interbrand and intrabrand competition. Among the results: both interbrand and intrabrand competition have twofold effects on R&D incentives. Existence of a vertically related market with imperfect competition lowers both the incentives to invest in process R&D and the competitive advantage through the R&D investment. We will show how the impact of a firm's R&D investments in either market on consumer surplus as well as on the profits of all firms in both markets depends on exogenous parameters.
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