Too much R&D? - Vertical differentiation in a model of monopolistic competition

No 59, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: This paper discusses a model of vertical an horizontal product differentiation within the Dixit-Stiglitz framework of monopolistic competition. Firns coompete not only in prices and horizontal attributes of their products, but also in the quality that can be controlled by R&D activities. Based upon te results of a general equilibrium model, intra-sectoral trade and the welfare implications of public intervention in terms of research promotion are considered. The analysis involves a numerical application to ten basic European industries.

Keywords: R&D; Monopolisitc Competition; Product Differentiation (search for similar items in EconPapers)
JEL-codes: D43 F12 L13 L16 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2007-08
New Economics Papers: this item is included in nep-com, nep-ino, nep-ipr, nep-pr~ and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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