Welfare properties of strategic R&D investments in Hotelling models

In linear-city models, if firms are allowed (not allowed) to locate outside the linear city, they engage in excessive (insufficient) R&D investments from the normative viewpoint. This implies that the feasible set of locations drastically affects their investments.

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Year of publication:	2012
Authors:	Matsumura, Toshihiro ; Matsushima, Noriaki
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 115.2012, 3, p. 465-468
Publisher:	Elsevier
Subject:	R&D \| Spatial competition \| Welfare

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Type of publication:	Article
Classification:	L13 - Oligopoly and Other Imperfect Markets ; R32 - Other Spatial Production and Pricing Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010572185