Toshihiro, Matsumura; Noriaki, Matsushima - In: The B.E. Journal of Economic Analysis & Policy 10 (2010) 1, pp. 1-42
This paper investigates an asymmetric duopoly model with R&D competition and product positioning. We find that an inefficient (small) firm may engage in R&D more intensively than an efficient (large) firm in spite of economies of scale in R&D activities. Contrary to the findings of previous...