IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-15-00125.html
   My bibliography  Save this article

Incomplete information and R&D organization

Author

Listed:
  • Srobonti Chattopadhyay

    (Vidyasagar College for Women)

  • Tarun Kabiraj

    (Indian Statistical Institute, Kolkata)

Abstract

This paper studies the choice of cooperative versus non-cooperative R&D under incomplete information about the innovation size of the rival. It is assumed that the R&D outcome is stochastic and continuously distributed with a given mean and a constant variance. We show that the incentive for cooperative research is smaller the larger is the variance of the R&D outcome, irrespective of the nature of the product market competition (Cournot versus Bertrand).

Suggested Citation

  • Srobonti Chattopadhyay & Tarun Kabiraj, 2015. "Incomplete information and R&D organization," Economics Bulletin, AccessEcon, vol. 35(1), pages 14-20.
    • Handle: RePEc:ebl:ecbull:eb-15-00125
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P2.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-1320, December.
    3. Marjit, Sugata, 1991. "Incentives for cooperative and non-cooperative R and D in duopoly," Economics Letters, Elsevier, vol. 37(2), pages 187-191, October.
    4. Motta, Massimo, 1992. "Cooperative R&D and vertical product differentiation," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 643-661, December.
    5. Arijit Mukherjee & Achintya Ray, 2009. "Unsuccessful patent application and cooperative R&D," Journal of Economics, Springer, vol. 97(3), pages 251-263, July.
    6. Combs, K. L., 1992. "Cost sharing vs. multiple research projects in cooperative R&D," Economics Letters, Elsevier, vol. 39(3), pages 353-357, July.
    7. Silipo, Damiano Bruno & Weiss, Avi, 2005. "Cooperation and competition in an R&D market with spillovers," Research in Economics, Elsevier, vol. 59(1), pages 41-57, March.
    8. Choi, Jay Pil, 1992. "Cooperative R&D with moral hazard," Economics Letters, Elsevier, vol. 39(4), pages 485-491, August.
    9. Kabiraj, Tarun & Chattopadhyay, Srobonti, 2014. "Cooperative vs. non-cooperative R&D incentives under incomplete information," MPRA Paper 59259, University Library of Munich, Germany.
    10. Choi, Jay Pil, 1993. "Cooperative R&D with product market competition," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 553-571.
    11. Tarun Kabiraj & Arijit Mukherjee, 2000. "Cooperation in R&D and production: a three-firm analysis," Journal of Economics, Springer, vol. 71(3), pages 281-304, October.
    12. Kabiraj, Tarun, 2007. "On the incentives for cooperative research," Research in Economics, Elsevier, vol. 61(1), pages 17-23, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kabiraj, Tarun & Chattopadhyay, Srobonti, 2014. "Cooperative vs. non-cooperative R&D incentives under incomplete information," MPRA Paper 59259, University Library of Munich, Germany.
    2. Kabiraj, Abhishek & Kabiraj, Tarun, 2019. "Uncertain R&D Outcomes and Cooperation in R&D," MPRA Paper 94676, University Library of Munich, Germany.
    3. Chatterjee, Rittwik & Kabiraj, Tarun, 2023. "Cooperative vs. Non-cooperative R&D under Uncertain Probability of Success," MPRA Paper 117623, University Library of Munich, Germany.
    4. Silipo, Damiano Bruno & Weiss, Avi, 2005. "Cooperation and competition in an R&D market with spillovers," Research in Economics, Elsevier, vol. 59(1), pages 41-57, March.
    5. Arijit Mukherjee, 2002. "R&D, Licensing and Patent Protection," Industrial Organization 0211011, University Library of Munich, Germany.
    6. Rittwik Chatterjee & Srobonti Chattopadhyay, 2015. "Collaborative Research and Rate of Interests," Studies in Microeconomics, , vol. 3(2), pages 140-157, December.
    7. Chatterjee, Rittwik & Chattopadhyay, Srobonti, 2015. "Collaborative Research and Rate of Interests," MPRA Paper 62114, University Library of Munich, Germany.
    8. Kabiraj, Tarun, 2007. "On the incentives for cooperative research," Research in Economics, Elsevier, vol. 61(1), pages 17-23, March.
    9. Erkal, Nisvan & Piccinin, Daniel, 2010. "Cooperative R&D under uncertainty with free entry," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 74-85, January.
    10. Silipo, Damiano B., 2008. "Incentives and forms of cooperation in research and development," Research in Economics, Elsevier, vol. 62(2), pages 101-119, June.
    11. Kabiraj, Abhishek & Kabiraj, Tarun, 2018. "On the Choice of R&D Organization," MPRA Paper 87503, University Library of Munich, Germany.
    12. Abhishek Kabiraj, 2018. "R&D cooperation in a three-firm Cournot industry," Economics Bulletin, AccessEcon, vol. 38(3), pages 1541-1546.
    13. Ghosh, Arghya & Morita, Hodaka, 2008. "An economic analysis of platform sharing," Journal of the Japanese and International Economies, Elsevier, vol. 22(2), pages 164-186, June.
    14. Siddhartha Bandyopadhyay & Arijit Mukherjee, 2014. "R&D Cooperation with Entry," Manchester School, University of Manchester, vol. 82(1), pages 52-70, January.
    15. Arijit Mukherjee, 2005. "Innovation, Licensing And Welfare," Manchester School, University of Manchester, vol. 73(1), pages 29-39, January.
    16. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.
    17. De Fraja, Gianni & Silipo, Damiano Bruno, 2002. "Product market competition, R&D, and welfare," Research in Economics, Elsevier, vol. 56(4), pages 381-397, December.
    18. Miyagiwa, Kaz & Ohno, Yuka, 2002. "Uncertainty, spillovers, and cooperative R&D," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 855-876, June.
    19. Tarun Kabiraj & Arijit Mukherjee, 2000. "Cooperation in R&D and production: a three-firm analysis," Journal of Economics, Springer, vol. 71(3), pages 281-304, October.
    20. Hinloopen, Jeroen, 2000. "Strategic R&D Co-operatives," Research in Economics, Elsevier, vol. 54(2), pages 153-185, June.

    More about this item

    Keywords

    Cooperative R&D; non-cooperative R&D; incomplete information; variance of the research outcome.;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-15-00125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.