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Unilateral Technology Sharing among Competitors in Markets with Heterogeneous Consumers

Author

Listed:
  • Yoshida Shohei

    (Japan Society for the Promotion of Science, Institute of Social and Economic Research, Osaka University, Mihogaoka 6-1, Ibaraki, Osaka567-0047, Japan)

  • Pan Cong

    (Institute of Social and Economic Research, Osaka University, Mihogaoka 6-1, Ibaraki, Osaka567-0047, Japan)

Abstract

This paper explains why some firms share their technology with competitors. We consider a Hotelling market where duopolists sell products with different qualities. This market consists of heterogeneous consumers, comprising three groups in terms of their valuations of product quality. We show that when consumers’ preferences for product quality are sufficiently heterogeneous, a high-quality firm benefits from sharing quality-enhancing technology.

Suggested Citation

  • Yoshida Shohei & Pan Cong, 2017. "Unilateral Technology Sharing among Competitors in Markets with Heterogeneous Consumers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(4), pages 1-6, October.
    • Handle: RePEc:bpj:bejeap:v:17:y:2017:i:4:p:6:n:3
    DOI: 10.1515/bejeap-2016-0173
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    References listed on IDEAS

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    Cited by:

    1. Chen, Junlong & Sun, Chaoqun & Shi, Jiayan & Liu, Jiali, 2022. "Technology R&D and sharing in carbon emission reduction in a duopoly," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    2. Joanna Poyago‐Theotoky & Khemarat Talerngsri Teerasuwannajak, 2020. "Endogenous research and development spillovers and asymmetric firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1282-1286, October.

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    More about this item

    Keywords

    technology sharing; competitor collaboration; consumer heterogeneity;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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