Publikacja:
Greed and Fear in Downstream R&D Games
Data
2019
Artykuł
Przeszukaj czasopismo| cris.legacyid | 5799 |
| cris.virtual.journalance | #PLACEHOLDER_PARENT_METADATA_VALUE# |
| cris.virtualsource.journalance | c5e604c2-f6bd-4f19-914c-e01c8ff3c6c3 |
| dc.abstract.pl | The aim of this paper is to investigate the fi rms’ incentives to engage in process R&D under vertical industrial setting, when the raising rivals’ cost effect is present. We show that R&D investment of the downstream duopoly fi rm raises the rival’s marginal costs of production. The downstream R&D behavior can give rise to the symmetric investment games, i.e., the prisoner’s dilemma, the deadlock game and the harmony game, between downstream competitors. If the costs of the R&D investments made by the downstream fi rms are large enough, the downstream fi rms can participate in the harmony game, which results in the investment hold-up or the creation of the R&D-avoiding cartel. For more R&D-effi cient downstream fi rms, the downstream investment game can end up in the prisoner’s dilemma or the deadlock game. In the prisoner’s dilemma, both downstream fi rms invest in R&D, but such a behavior is not Pareto optimal. In the prisoner’s dilemma, greed and fear make fi rms invest in R&D. In the deadlock game, both downstream fi rms invest in R&D, and such a behavior is Pareto optimal. The R&D investments are not induced by any social tension (greed or fear). |
| dc.contributor.affiliation | Warsaw School of Economics |
| dc.contributor.author | Adam Karboowski |
| dc.date.accessioned | 2025-07-28T14:24:53Z |
| dc.date.available | 2025-07-28T14:24:53Z |
| dc.date.issued | 2019 |
| dc.date.published | 12/2019 |
| dc.description.issue | 32 |
| dc.description.physical | 63-76 |
| dc.identifier.doi | 10.7206/DEC.1733-0092.131 |
| dc.identifier.issn | 1733-0092 |
| dc.identifier.uri | https://repozytorium.kozminski.edu.pl/handle/item/3627 |
| dc.language | en |
| dc.relation.ispartof | Collective and Individual Decisions |
| dc.relation.pages | 63-76 |
| dc.rights | CC-BY-4.0 |
| dc.subject | badania i rozwój |
| dc.subject | inwestycje |
| dc.subject | dylemat więźnia |
| dc.subject | zakleszczenie |
| dc.subject | harmonia |
| dc.subtype | Original |
| dc.title | Greed and Fear in Downstream R&D Games |
| dc.type | Article |
| dspace.entity.type | Publication |