EndogenousTechnologySpillover

EndogenousTechnologySpillover - 177.77778 191.84028...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Endogenous Technology Spillover Demand Parameters Cost Parameters A = 120 Marginal costs B = 1 c = 80 Research Costs Research Intensity D = 1 High x = 15 Low x = 10 Research Spillover High β= 0.75 Low β= 0.25 Research Intensity (High, High) Research Intensity (High, Low) Spillover Spillover High Low High Low High 262.67 262.67 66.84 379.34 High 226.56 300.00 96.01 369.44 Spillover Spillover Low 379.34 66.84 158.51 158.51 Low 339.06 125.00 191.84 177.78 Nash Equilibrium 158.51 158.51 Nash Equilibrium 191.84028 177.77778 Research Intensity (Low, Low) Research Intensity (Low, High) Spillover Spillover High Low High Low High 267.36 267.36 150.69 334.03 High 300.00 226.56 125.00 339.06 Spillover Spillover Low 334.03 150.69 206.25 206.25 Low 369.44 96.01 177.78 191.84 Nash Equilibrium 206.25 206.25 Nash Equilibrium
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 177.77778 191.84028 Research Intensity Choice High Low High 158.51 158.51 191.84 177.78 Low 177.78 191.84 206.25 206.25 Nash Equilibrium 206.25 206.25 This spreadsheet allows you to investigate the equilibrium for a three-stage game in which two Cournot firms first choose their research intensities, then the degree of technology spillover they will allow and finally compete in the product market. The Demand Function is P = A - B.Q, Marginal production costs are constant at c per unit, Research Costs are D*x^2 where x is the Research Intensity. Each firm can choose the degree of technology spillover...
View Full Document

Ask a homework question - tutors are online