Haruna, Shoji; Goel, Rajeev - In: Economics of Innovation and New Technology 20 (2011) 1, pp. 89-101
We employ a three-stage game model with cost-reducing research and development (R&D) that is subject to spillovers to consider the problem of excess entry under free-entry equilibrium relative to the social optimum. Firms choose to enter or exit a market in the first stage, choose R&D in the...