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Differentiated Products with R&D

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  • Harter, John F R

Abstract

This paper looks to the literature on one-dimensional, location models and adds to it a simple process of research and development. Differentiated-products models have often included sequential entry in order to add realism, but the order entry is known. Here, t he order is not known a priori. Also, interim profits are not ignored, allowing the monopoly profits to affect the outcome. It is found tha t firms do not necessarily locate at the extrema, but often race for t he optimal monopoly variety--the midpoint of the interval. Copyright 1993 by Blackwell Publishing Ltd.

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  • Harter, John F R, 1993. "Differentiated Products with R&D," Journal of Industrial Economics, Wiley Blackwell, vol. 41(1), pages 19-28, March.
    • Handle: RePEc:bla:jindec:v:41:y:1993:i:1:p:19-28
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    Cited by:

    1. Piga, Claudio & Poyago-Theotoky, Joanna, 2005. "Endogenous R&D spillovers and locational choice," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 127-139, March.
    2. Lambertini, Luca, 2002. "Equilibrium locations in a spatial model with sequential entry in real time," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 47-58, January.
    3. Lambertini, Luca, 1997. "Unicity of the equilibrium in the unconstrained Hotelling model," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 785-798, November.
    4. Jianhu Zhang & Changying Li, 2013. "Endogenous timing in a mixed oligopoly under demand uncertainty," Journal of Economics, Springer, vol. 108(3), pages 273-289, April.
    5. Changying Li & Jianhu Zhang, 2013. "Dynamic Games of R&D Competition in a Differentiated Duopoly," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(4), pages 660-679, December.
    6. Levin, Mark (Левин, Марк) & Matrosova, K. (Матросова, К.), 2016. "Research, Modeling and Process Management Dissemination of Innovations in Socio-Economic Systems [Исследование, Моделирование И Управление Процессами Распространения Инноваций В Социально-Экономиче," Working Papers 1443, Russian Presidential Academy of National Economy and Public Administration.
    7. Lambertini, Luca, 2005. "Advertising in a dynamic spatial monopoly," European Journal of Operational Research, Elsevier, vol. 166(2), pages 547-556, October.
    8. Luca Lambertini, 2007. "Dynamic Spatial Monopoly with Product Development," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(2), pages 157-166.
    9. Jianhu Zhang & Changying Li, 2013. "Endogenous R&D spillover and location choice in a mixed oligopoly," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 459-477, October.
    10. Li, Changying & Zhang, Jianhu, 2011. "Equilibrium locations in a mixed duopoly with sequential entry in real time," Economic Modelling, Elsevier, vol. 28(3), pages 1211-1218, May.
    11. Harter, John F. R., 1997. "Hotelling's competition with demand location uncertainty," International Journal of Industrial Organization, Elsevier, vol. 15(3), pages 327-334, May.
    12. Colombo, Stefano & Lambertini, Luca, 2023. "R&D investments with spillovers and endogenous horizontal differentiation," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    13. Heiko A. Gerlach & Thomas Rønde & Konrad Stahl, 2005. "Project Choice And Risk In R&D," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 53-81, March.
    14. Tse, Chung Yi, 2001. "Risky quality choice," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 185-212, January.

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