The road not taken: competition and the R&D portfolio.

This article examines the effects of market structure on the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases t...

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Detalles Bibliográficos
Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 2; pp. 433 - 461
Autor principal: Letina, Igor
Formato: Artículo
Publicado: Wiley-Blackwell Summer2016
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:This article examines the effects of market structure on the variety of research projects undertaken and the amount of duplication of research. A characterization of the equilibrium market portfolio of R&D projects and the socially optimal portfolio is provided. It is shown that a merger decreases the variety of developed projects and decreases the amount of duplication of research. An increase in the intensity of competition among firms leads to an increase in the variety of developed projects and a decrease in the amount of duplication of research.