Product R&D and International Trade under Bertrand Competition

• 발행기관: 한국무역연구원
• 저자명: Il-Seok Yang
• 간행물 정보: 『무역연구』제14권 제2호, 1~20쪽, 전체 20쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2018.04.23

영문 초록

This study analyzes the equilibrium level of product differentiation, aggregate profit, and aggregate welfare from competition and two types of cooperation in product R&D investments in an international duopoly model under price competition. We show that the equilibrium level of product differentiation can be the highest in the harmonization of product R&D investment; the second highest in the asymmetry of product R&D investment; and the lowest in product R&D competition. We also show that aggregate profit and aggregate welfare under trade liberalization can be the highest in the harmonization of product R&D investment if the difference between the cost of product R&D is sufficiently small, while those under trade liberalization can be greatest in product R&D competition if the difference in cost is sufficiently large enough to reverse the sign.

목차

Ⅰ. Introduction

Ⅱ. The Basic Model

Ⅲ. Noncooperation in Product R&D Investments

Ⅳ. Cooperation in Product R&D Investments

Ⅴ. Concluding Remarks

키워드

Bertrand Competition Economic Integration International Trade Product R&D Trade Costs