Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086473 | Japan and the World Economy | 2006 | 9 Pages |
Abstract
We investigate the role of R&D investment in transport and communication (TCRD) in a Cournot duopoly with trade. We consider countries of different size and show that the firm located in the smaller country has a higher incentive to invest than the rival in the larger country. We also prove that social incentives are aligned with private ones. As for the terms of trade, any improvement of TC technology favours the smaller country, all else equal.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Luca Lambertini, Gianpaolo Rossini,