Voluntary R&D cooperation in experimental duopoly markets
Faculty of Applied Economics
Antwerp :UA, 2003
Research paper / UA, Faculty of Applied Economics UFSIA-RUCA ; 2003:029
University of Antwerp
In the paper I examine in an experiment whether for two different levels of technological spillovers, cooperative R&D behavior voluntarily arises when firms have communication possibilities. It is assumed that in the output market, firms compete `a la Cournot. Experimental results indicate that when technological spillovers are complete and subjects communicate, R&D decisions converge to the cooperative level, while in other cases R&D decisions converge towards the Nash equilibrium.