The logic for state monopoly of public utilities arises from increasing returns to scale and the concern that private business in these areas results in monopolistic exploitation of consumers. The state monopoly however is fraught with the danger of production inefficiency. In this backdrop, the...

Spillover of R&D results in oligopolistic industries may affect the R&D decisions of firms. How much a newly eveloped technology by a firm gets spilled over to its rival firms may or may not be observable by the concerned firm. This paper considers a two stage game involving two firms. In the...

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...

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...

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...

We construct a differentiated duopoly model to study whether free licensing can be profitable without network externalities and demand shift effect. The efficient firm possesses a superior input-saving technology and sells inputs to the backward firm. However, the optimal input price can be...

With more and more globalization, international trade has expanded to a large extent. This is also observable for trades in high technology products. India and China have emerged as two major exporters of high technology products in the world today. This paper makes an attempt to understand the...

This paper considers a two-stage game, where in the first stage, two firms bid non-cooperatively for a production technique that leads to a reduction in cost. Following the auction in the second stage of the game these firms compete against each other in a duopolistic industry. The amount of...

Promoting competition in domestic markets is very often an important policy concern of governments in context of developmental objectives. Direct government intervention of different forms to promote competition becomes all the more necessary especially in the markets that have higher tendencies...