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Srobonti Chattopadhyay and Tarun Kabiraj
''Incomplete information and R&D organization''
( 2015, Vol. 35 No.1 )
This paper studies the choice of cooperative versus non-cooperative R&D under incomplete information about the innovation size of the rival. It is assumed that the R&D outcome is stochastic and continuously distributed with a given mean and a constant variance. We show that the incentive for cooperative research is smaller the larger is the variance of the R&D outcome, irrespective of the nature of the product market competition (Cournot versus Bertrand).
Keywords: Cooperative R&D, non-cooperative R&D, incomplete information, variance of the research outcome.
JEL: Q3 - Nonrenewable Resources and Conservation: General
D4 - Market Structure and Pricing: General
Manuscript Received : Mar 11 2015 Manuscript Accepted : Mar 11 2015

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