Title: Network externalities and process R&D: A Cournot-Bertrand comparison
Abstract: This paper examines the implication of the nature of competition in a market with network externalities on strategic investment in process RD but, that effect is larger under Bertrand competition than under Cournot competition. If network externalities are sufficiently strong, regardless of the degree of product differentiation, Bertrand firms have a stronger incentive for process R&D than Cournot firms. Otherwise, if network externalities are not sufficiently strong, the higher the degree of product differentiation, the greater is the possibility of Bertrand R&D to be higher than Cournot R&D.
Publication Year: 2016
Publication Date: 2016-07-01
Language: en
Type: preprint
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Cited By Count: 1
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