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Welfare properties of strategic R&D investments in Hotelling models

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  • Matsumura, Toshihiro
  • Matsushima, Noriaki

Abstract

In linear-city models, if firms are allowed (not allowed) to locate outside the linear city, they engage in excessive (insufficient) R&D investments from the normative viewpoint. This implies that the feasible set of locations drastically affects their investments.

Suggested Citation

  • Matsumura, Toshihiro & Matsushima, Noriaki, 2012. "Welfare properties of strategic R&D investments in Hotelling models," Economics Letters, Elsevier, vol. 115(3), pages 465-468.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:3:p:465-468
    DOI: 10.1016/j.econlet.2011.12.106
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    References listed on IDEAS

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    Cited by:

    1. Guo, Wen-Chung & Lai, Fu-Chuan, 2024. "R&D investments and location choices with three firms," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1448-1459.
    2. Youping Li & Jie Shuai, 2018. "A Welfare Analysis of Location Space Constraints with Vertically Separated Sellers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 161-177, February.
    3. Kimura,Koichiro, 2023. "Does the product characteristic distance get closer or not? Differentiation and imitation in a hotelling model," IDE Discussion Papers 869, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Jiafeng Gu, 2021. "Determinants of biopharmaceutical R&D expenditures in China: the impact of spatiotemporal context," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(8), pages 6659-6680, August.
    5. Colombo, Stefano & Lambertini, Luca, 2023. "R&D investments with spillovers and endogenous horizontal differentiation," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    6. Xing, Mingqing & Tan, Tingting & Wang, Xia, 2021. "Emission taxes and environmental R&D risk choices in a duopoly market," Economic Modelling, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    R&D; Spatial competition; Welfare;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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