IDEAS home Printed from https://ideas.repec.org/p/bol/bodewp/416.html
   My bibliography  Save this paper

Product Innovation and Transportation Technology in a Cournot Duopoly

Author

Listed:
  • A. Mantovani

Abstract

In this paper I will evaluate the strategic behavior of two firms which can activate R&D investments either to process or to product innovation. I will consider a particular kind of process R&D activity, which I will call Transport and Communication R&D and which aims at increasing the net amount of the product that reaches consumers. I will limit my study to a Cournot duopoly setting. The strategic interaction will be therefore expressed in terms of a two-stage three strategy game, where firms first decide whether to invest in one of the two types of R&D and then they compete in the market by setting quantities. As a result, I will obtain both symmetric and asymmetric equilibria, depending on the relative efficiency of the R&D effort.

Suggested Citation

  • A. Mantovani, 2001. "Product Innovation and Transportation Technology in a Cournot Duopoly," Working Papers 416, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:416
    as

    Download full text from publisher

    File URL: https://amsacta.unibo.it/4883/1/416.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dos Santos Ferreira, Rodolphe & Thisse, Jacques-Francois, 1996. "Horizontal and vertical differentiation: The Launhardt model," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 485-506, June.
    2. Bester, Helmut & Petrakis, Emmanuel, 1993. "The incentives for cost reduction in a differentiated industry," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 519-534.
    3. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    4. L. Lambertini & A. Mantovani & G. Rossini, 2001. "R&D in transport and comunication in a Cournot duopoly," Working Papers 401, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Lambertini, Luca & Orsini, Raimondello, 2000. "Process and product innovation in a vertically differentiated monopoly," Economics Letters, Elsevier, vol. 68(3), pages 333-337, September.
    6. Gabszewicz, Jean Jaskold & Thisse, Jacques-Francois, 1986. "On the Nature of Competition with Differentiated Products," Economic Journal, Royal Economic Society, vol. 96(381), pages 160-172, March.
    7. James A. Brander & Barbara J. Spencer, 1983. "Strategic Commitment with R&D: The Symmetric Case," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 225-235, Spring.
    8. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    9. Lambertini, Luca & Rossini, Gianpaolo, 1998. "Product homogeneity as a prisoner's dilemma in a duopoly with R&D," Economics Letters, Elsevier, vol. 58(3), pages 297-301, March.
    10. Bonanno, Giacomo & Haworth, Barry, 1998. "Intensity of competition and the choice between product and process innovation," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 495-510, July.
    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. A. Mantovani, 2001. "Transportation Technologyin a Duopoly Model of International Trade," Working Papers 417, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Lambertini, Luca & Mantovani, Andrea, 2009. "Process and product innovation by a multiproduct monopolist: A dynamic approach," International Journal of Industrial Organization, Elsevier, vol. 27(4), pages 508-518, July.
    3. Luca Lambertini & Andrea Mantovani, 2010. "Process and product innovation: A differential game approach to product life cycle," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(2), pages 227-252, June.
    4. Swapnendu Bandyopadhyay & Rajat Acharyya, 2004. "Process and Product Innovation: Complementarity in a Vertically Differentiated Monopoly with Discrete Consumer Types," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 175-200, June.
    5. L. Colombo & L. Lambertini & A. Mantovani, 2003. "A Differential Game with Investment in Transport and Communication R&D," Working Papers 466, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Paul Belleflamme & Cecilia Vergari, 2011. "Incentives To Innovate In Oligopolies," Manchester School, University of Manchester, vol. 79(1), pages 6-28, January.
    7. Pal, Rupayan, 2010. "Technology adoption in a differentiated duopoly: Cournot versus Bertrand," Research in Economics, Elsevier, vol. 64(2), pages 128-136, June.
    8. Lambertini, Luca & Rossini, Gianpaolo, 2006. "Investment in transport and communication technology in a Cournot duopoly with trade," Japan and the World Economy, Elsevier, vol. 18(2), pages 221-229, March.
    9. Colombo, Luca & Lambertini, Luca & Mantovani, Andrea, 2009. "Endogenous transportation technology in a Cournot differential game with intraindustry trade," Japan and the World Economy, Elsevier, vol. 21(2), pages 133-139, March.
    10. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899.
    11. Rupayan Pal, 2009. "Technology Adoption in a Differentiated Duopoly: Cournot versus Bertrand," Working Papers id:1941, eSocialSciences.
    12. Bacchiega, Emanuele & Bonroy, Olivier & Mabrouk, Rania, 2013. "Paying not to sell," Economics Letters, Elsevier, vol. 121(1), pages 137-140.
    13. Qiu, Larry D., 1997. "On the Dynamic Efficiency of Bertrand and Cournot Equilibria," Journal of Economic Theory, Elsevier, vol. 75(1), pages 213-229, July.
    14. Arijit Mukherjee, 2010. "Competition And Welfare: The Implications Of Licensing," Manchester School, University of Manchester, vol. 78(1), pages 20-40, January.
    15. Lin, Ping & Saggi, Kamal, 2002. "Product differentiation, process R&D, and the nature of market competition," European Economic Review, Elsevier, vol. 46(1), pages 201-211, January.
    16. Tishler, Asher & Milstein, Irena, 2009. "R&D wars and the effects of innovation on the success and survivability of firms in oligopoly markets," International Journal of Industrial Organization, Elsevier, vol. 27(4), pages 519-531, July.
    17. Stefano Colombo & Luigi Filippini, 2019. "The choice between product and logistic innovation in a spatial model with income distribution," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 609-627, December.
    18. Bernhofen, Daniel M. & Bernhofen, Laura T., 1999. "On the likelihood of a prisoners' dilemma in a differentiated duopoly," Economics Letters, Elsevier, vol. 64(3), pages 291-294, September.
    19. Carlos Ocaña Pérez de Tudela, 1993. "Modelos dinámicos de competencia estratégica y cambio técnico: una panorámica," Investigaciones Economicas, Fundación SEPI, vol. 17(1), pages 43-63, January.
    20. Pia Weiss, 2003. "Adoption of Product and Process Innovations in Differentiated Markets: The Impact of Competition," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 301-314, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bol:bodewp:416. 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: Dipartimento Scienze Economiche, Universita' di Bologna (email available below). General contact details of provider: https://edirc.repec.org/data/sebolit.html .

    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.