R&D AND OUTPUT BEHAVIOR OF DUOPOLISTIC FIRMS WITH CONJECTURAL VARIATIONS IN R&D
-
Authors:
• Shoji Haruna, email: haruna_shoji@yahoo.co.jp, Afiliation: Professor, Ph.D. Department of Economics, Okayama University, Japan
• Katsunari Ohashi -
Keywords: R&D, Spillover, Conjectural Variations, Oligopolistic Firms
-
Abstract:
We analyze R&D and output behavior of oligopolistic firms under R&D spillover when they possess conjectural variations in R&D. By use of the conjectural variations approach, the preceding researches on R&D are extended to more general analysis and the behavior of actual firms in a lot of industries are more elucidated. This paper shows that the results on the R&D and output behavior are totally reversed by whether firms act in an aggressive or a passive way in the R&D decision. It is demonstrated that the conventional results hold under a range of competition or collusion as well. CVs in R&D play a crucial role in determining the level of technological improvement.