کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5078683 1477366 2007 17 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Reexamining the effect of the most-favored-nation provision in input prices on R and D incentives
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Reexamining the effect of the most-favored-nation provision in input prices on R and D incentives
چکیده انگلیسی
We examine the effect of the most-favored-nation provision in input prices on downstream firms' R and D incentives. Contrary to the previous literature, we show that the effect depends on the extent of substitutability between downstream firms if they compete in two-part tariffs. When a downstream firm lowers its marginal cost, it entails two conflicting effects on the upstream firm's pricing for inputs, the standard elasticity effect of penalizing the low-cost firm and the market share effect of rewarding it. If substitutability between downstream products is high enough, the latter dominates the former, and thus downstream firms will choose a higher marginal cost technology under the MFN provision.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: International Journal of Industrial Organization - Volume 25, Issue 1, February 2007, Pages 201-217
نویسندگان
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