Spillovers of R&D outcome affect the R&D decision of a firm. The present paper discusses the R&D incentives of a firm when the extent of R&D spillover is private information to each firm. We construct a two stage game involving two firms when the firms first decide simultaneously whether to...

This paper seeks to examine, in the context of Marjit (1991, Eco. Lett.) and Mukherjee and Marjit (2004, Gr. Dec. Nego.) models, the effect on the choice of R&D organization if the number of research lab is chosen by the firms optimally under R&D cooperation. Given the optimal form of R&D...

It is commonly believed that spillover reduces R&D incentives of a firm. This happens because of the non-appropriability problem. However, some empirical literature shows the possibility of enhanced R&D incentives under spillovers. While this is explained in the literature under incomplete...

The analysis provides insights regarding the suitability of offensive versus defensive measures in countering a terror cell. It is shown that the optimal allocation is more offensive when the cell is aware of which targets have been protected, but unable to distinguish between the values of...

The present paper provides a brief survey of some of the papers dealing with R&D uncertainty. This helps us identify which factors are more favorable for cooperative R&D and which factors are not. The paper provides the analysis under a unified framework. We take the classic paper by Marjit...

We consider interaction of two terror outfits and study possible counter-terrorism (CT) measures, both in the absence and presence of external terror finance. In our paper, external sponsorship with proportional allocation rule, induces strategic interaction and incentivizes more attacks. We...

A firm’s decision to invest in R&D depends on a number of factors like availability of funds, extent of R&D spillovers, market structure, and success probability. However, probability of success depends, to a large extent, on factors endogenous to a firm. This means, success probability can be...

The paper shows that in the absence of external sponsorship, strategic cooperation between two outfits has no impact on terror activity, if neither outfit is resource-constrained a priori. If only one outfit is resource-constrained a priori, inter-group cooperation increases terror activity if...

R&D decision of a firm involves various sources of incomplete information. The present paper introduces incomplete information about the success probability of R&D in a model of two firms interacting in R&D and production and discusses the choice between cooperative and non-cooperative research....

The paper studies incentives for cooperative research vis-à-vis non-cooperative research under incomplete information when the R&D outcome is stochastic and continuously distributed with a given mean and a constant variance. We show that the non-cooperative R&D incentive increases with the...