Department   Undergraduate School  , School of Commerce
   Position   Professor
Language English
Publication Date 2012/08
Type Academic Journal
Peer Review Peer reviewed
Title "Endogenous Product Differentiation and Product R&D in Spatial Cournot Competition", Annals of Regional Science
Contribution Type Co-authored (first author)
Journal Annals of Regional Science
Journal TypeAnother Country
Publisher Springer
Volume, Issue, Page 49(1),pp.117-133
Author and coauthor Takeshi Ebina and Daisuke Shimizu
Details We investigate in a spatial Cournot competition setting how much product research and development (R&D) investment firms make in order to differentiate their goods. The model features a location competition in the first stage, R&D competition in the second stage, and Cournot competition in the third stage. There are two differentiation methods in the model-spatial differentiation affecting the firm costs, and differentiation in the demand function affecting the demand levels. We find that comparing to the setting with no spatial connotation, the firms tend to invest less in product R&D. We also consider welfare implications. Although the firms employ maximum differentiation in equilibrium, there are cases in which welfare can be improved if the firms are to locate closer to each other.
URL for researchmap https://researchmap.jp/ebinatakeshi2010/