Relative performance and R&D competition

Toshihiro Matsumura; Noriaki Matsushima; Susumu Cato

This paper formulates a duopoly model in which firms care about relative profits as well as their own profits. Our purpose is to investigate the relationship between the weight of relative performance and R&D expenditure. We find a non-monotone relationship between the weight of relative performance in their objectives and their R&D levels. Both highly reciprocal (altruism) and negative reciprocal attitudes yield high levels of R&D, while the intermediate situations yield low levels of R&D. -- relative profit ; innovation ; spite ; altruism

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Year of publication:	2009
Authors:	Matsumura, Toshihiro ; Matsushima, Noriaki ; Cato, Susumu
Publisher:	Osaka : Inst. of Social and Economic Research, Osaka Univ.
Subject:	Wettbewerb \| Competition \| Theorie \| Theory \| Internationaler Wettbewerb \| International competition

Extent:	Online-Ressource (19 S.) graph. Darst.
Series:	Discussion paper / Institute of Social and Economic Research. - Osaka : [Verlag nicht ermittelbar], ISSN 2435-0982, ZDB-ID 2106942-6. - Vol. 752
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/92778 [Handle]
Classification:	L21 - Business Objectives of the Firm ; O31 - Innovation and Invention: Processes and Incentives ; L13 - Oligopoly and Other Imperfect Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10003921799