On R&D Information Sharing and Merger
Published By: | Published Date: May, 27 , 2006The paper deals with the issue of information sharing in a Cournot duopoly by an innovating
firm in the face of a merger with its rival. The innovating firm would share information about
the cost realization with its rival provided the market size is relatively small or, the R&D
technology is relatively more efficient in a medium market size. However, in a large market,
or in a medium market size with less efficient R&D technology, the innovating firm does not
share information with its rival. They also show that the social welfare may be higher under
incomplete information regime. [Working Paper No. 145]
Author(s): Uday Bhanu Sinha | Posted on: Sep 27, 2010 | Views(1043) | Download (676)