[go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

Cournot-Bertrand comparison under R&D competition: Output versus R&D subsidies

Jiaqi Chen and Sang-Ho Lee

MPRA Paper from University Library of Munich, Germany

Abstract: This study compares Cournot and Bertrand firms with research and development (R&D) competition under government policies between output and R&D subsidies. We demonstrate that firms invest more (less) in R&D and the government grants more (less) subsidies under Cournot than Bertrand competition with output (R&D) subsidy policies. We also reveal that both competition modes yield the same welfare with output subsidy while Bertrand yields higher welfare than Cournot with R&D subsidy irrespective of product substitutability. Finally, we show that firms’ profits and social welfare are always higher under output subsidies in Cournot competition, while they can be higher under R&D subsidies in Bertrand competition if the product substitutability is high and the firm’s R&D investment is efficient.

Keywords: Cournot; Bertrand; R&D investment; Output Subsidy; R&D subsidy (search for similar items in EconPapers)
JEL-codes: H21 L13 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-com, nep-cse and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/107949/1/MPRA_paper_107949.pdf original version (application/pdf)

Related works:
Journal Article: Cournot–Bertrand comparisons under R&D competition: Output versus R&D subsidies (2023) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107949

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2024-11-30
Handle: RePEc:pra:mprapa:107949