R&D Concentration Under Endogenous Fixed Costs: Evidence from Genetically Modified Corn Seed

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R&d Concentration under Endogenous Fixed Costs: Evidence from Genetically Modified Corn Seed

We examine the role of fixed costs in research and development (R&D) in the market for genetically modified (GM) corn seed. In a mixed model of horizontal differentiation by genetic traits and vertical differentiation by productivity, we derive the empirically testable lower bounds to R&D concentration when R&D investments and market entry are jointly determined. When R&D investments translate ...

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ژورنال

عنوان ژورنال: American Journal of Agricultural Economics

سال: 2017

ISSN: 0002-9092,1467-8276

DOI: 10.1093/ajae/aax036