Subsidies, Spillovers and Multilateral Cooperation

R&D Subsidies, Spillovers and Privatization in Mixed Markets

We examine the use of subsidies to R&D in a mixed and a private duopoly market. We show that the socially optimal R&D subsidy is increasing in the degree of spillovers but it is lower in the private duopoly. The optimal R&D subsidy leads to an increase in total R&D and production, however, it does not lead to the equalisation of per …rm output and therefore to an e¢ cient distribution of produc...

Architecting High-Security Systems for Multilateral Cooperation

Multilateral Interactions Improve Cooperation Under Random Fluctuations∗

In an environment subject to random fluctuations, when does an increase in the breadth of activities in which individuals interact together help foster collaboration on each activity? We show that when players, on average, prefer to stick to a cooperative agreement rather than reneging by taking their privately optimal action, then such an agreement can be approximated as equilibrium play in a ...

Bargaining, Enforcement, and Multilateral Sanctions: When Is Cooperation Counterproductive?

Acommon thread in the economic sanctions literature is the assumption that multilateral cooperation among the potential sanctioning states is a necessary and/or sufficient condition for generating a successful outcome.1 Indeed, obtaining multilateral cooperation is so important that some scholars make this their dependent variable. Some of the more sophisticated work on economic coercion has fo...

Innovation, regional knowledge spillovers and R&D cooperation

We investigate the impact of knowledge spillovers and R&D cooperation on innovation activities in three German regions. We begin by estimating the knowledge-production function in order to test for interregional difference with regard to the efficiency of innovation activities. In a second step, we analyze the contribution of spillovers from R&D effort of other private firms and of public resea...