This paper considers a strategic delegation setting with R&D spillovers in a Cournot market. The game we analyze has … selected. We characterize the sub-game perfect outcomes of this game depending on the level of R&D spillovers and derive the … following main insights. First, in a case where no spillovers exist, both owners have the incentive to delegate R&D and …

from one continuation probability to the other. When switching from large to small, transient higher levels of cooperation … are observed in the early games of the small continuation set. Conversely, when switching from small to large, cooperation … probabilities. These asymmetries suggest a bias in favor of cooperation. Finally, we examine the link between altruism and RPD play …