Essays in industrial organization with applications to research and development spillovers and the effects of antidumping law on market power

The purpose of the present study is two fold: (1) To examine the effects of asymmetric R&D spillovers on non-cooperative and cooperative agreements in both a segmented and integrated market; and (2) To assess the impact of antidumping law on the market power of firms in the Canadian steel industry. Previous research involving R&D spillovers in cooperative agreements have all modeled the spillovers as being symmetric, both within and across industries. The first two chapters of research relax this assumption and utilize regression analysis to estimate the magnitude of changes in the intra- and inter-industry spillovers. Chapter 1 develops a model of cooperative and non-cooperative research and development with asymmetric spillovers in a segmented market. Results from this analysis show that social welfare improving inter-industry cooperation that would not occur without subsidies is more likely than with symmetric spillovers. Additionally, situations exist where there are incentives for firms to cooperate in research and development (without subsidization) yet yield lower welfare. Chapter 2 develops a model of cooperative and non-cooperative research and development in an integrated market. Results show that having an integrated market decreases overall stability in both intra- and inter-segment cooperative agreements. Chapter 3 examines the impact of antidumping law on the market power of firms. Using firm-level regressions it is shown that market power significantly increases for all firms in the Canadian steel industry after an affirmative antidumping injury decision. Additionally, market power is significantly higher for firms that initiated the antidumping petitions.