We consider the impact of the cost paradox on the likelihood of cooperative firms to use a cost reducing Research Joint Venture (RJV) to increase research levels when spillovers are large.

In a carrot game for a player, that player must help his opponent in order to get a desired response. In a stick game for a player, that player must hurt his opponent to get a desired response. We show that most all smooth monotonic two player games can be classified as: carrot for both, carrot...

We consider when homogeneous goods quantity competition models are payoff equivalent to heterogeneous goods models. When they are equivalent, changes in some cost parameters are equivalent to changes in some demand parameters. Going from homogeneous models to heteregeneous models is always...

In this paper we give an account of the new approach to nonlinear econometric modelling proposed by Hamilton (2001) and briefly describe some of the methods of nonlinear optimization that may be used in the Gauss computer program provided by Hamilton for the implementation of his methodology....