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Cooperative Product Development and Endogenous Information Sharing

Author

Listed:
  • Baerenss, Antje

    (Europe Economics)

Abstract

In this paper, a model of product innovation is developed that endogenizes the degree of cooperation. Two opposing forces affect firm profit in an R&D joint venture. Cooperation increases the quality of the product but it also makes the new products more similar. The increasing substitutability of the product intensifies competition in the production stage. Thus, it may not be optimal to share all of the product information. The basic model is altered to allow for a joint-selling agreement and for tariffs or transport costs. Firms are found to increase R&D cooperation if they are protected from product market competition.

Suggested Citation

  • Baerenss, Antje, 2000. "Cooperative Product Development and Endogenous Information Sharing," Working Paper Series 549, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0549
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    File URL: https://www.ifn.se/Wfiles/wp/WP549.pdf
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    More about this item

    Keywords

    R&D cooperation; Product innovation; Information sharing;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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