R&D investments under endogenous cluster formation

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R&D Investments under Endogenous Cluster Formation

We study investments in R&D and the formation of R&D clusters of firms which are competitors in the market. In a three stage game, firms first decide on the budget allocated to their R&D department, then form research clusters and finally compete in quantities. The second stage cluster formation is modeled by the unanimity game introduced in Bloch(1995). We show that for any distribution of R&D...

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ژورنال

عنوان ژورنال: Journal of Economic Behavior & Organization

سال: 2020

ISSN: 0167-2681

DOI: 10.1016/j.jebo.2020.03.039