Spillover of R&D in Duopoly Industries Shakes Up Market Dynamics
The article explores how sharing research findings between companies can impact their decisions to invest in new technology. The study looks at a game involving two firms where they first decide on research investments and then compete in a market. The research compares how much information firms have about their rivals' ability to benefit from shared knowledge. The results show that having more information about how much a rival can benefit from shared knowledge can have a mixed impact on firms' research activities.