@article{ART002258340},
author={Lee Sang Ho},
title={The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2017},
volume={28},
number={3},
pages={53-79},
doi={10.23842/jif.2017.28.3.003}
TY - JOUR
AU - Lee Sang Ho
TI - The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy
JO - Journal of Insurance and Finance
PY - 2017
VL - 28
IS - 3
PB - Korea Insurance Research Institute
SP - 53
EP - 79
SN - 2384-3209
AB - This paper investigates the choices of R&D risk in a mixed duopoly market, where public and private firms compete with differentiated products and R&D investments. We then examine the effects of privatization and provide policy-relevant implications. The main findings are as follows: first, both expected consumer surplus and expected social welfare increase more with the R&D risk of public firm. Thus, public firm chooses a higher R&D risk than that of private firm, and the difference of the choices of R&D risk between two firms increases as product substitutability increases. Second, private firm chooses a lower R&D risk than the social optimum in a mixed market. Therefore, government should not only encourage the private firm to choose a higher R&D risk, but increase the intensity of market competition. Third, privatization policy induces profit-oriented privatized firm to choose a lower R&D risk. Thus, government should provide R&D incentives to encourage the firms to choose higher R&D risks in a private market.
KW - mixed duopoly market;R&D risk;privatization;social optimum;product substitutability
DO - 10.23842/jif.2017.28.3.003
ER -
Lee Sang Ho. (2017). The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy. Journal of Insurance and Finance, 28(3), 53-79.
Lee Sang Ho. 2017, "The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy", Journal of Insurance and Finance, vol.28, no.3 pp.53-79. Available from: doi:10.23842/jif.2017.28.3.003
Lee Sang Ho "The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy" Journal of Insurance and Finance 28.3 pp.53-79 (2017) : 53.
Lee Sang Ho. The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy. 2017; 28(3), 53-79. Available from: doi:10.23842/jif.2017.28.3.003
Lee Sang Ho. "The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy" Journal of Insurance and Finance 28, no.3 (2017) : 53-79.doi: 10.23842/jif.2017.28.3.003
Lee Sang Ho. The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy. Journal of Insurance and Finance, 28(3), 53-79. doi: 10.23842/jif.2017.28.3.003
Lee Sang Ho. The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy. Journal of Insurance and Finance. 2017; 28(3) 53-79. doi: 10.23842/jif.2017.28.3.003
Lee Sang Ho. The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy. 2017; 28(3), 53-79. Available from: doi:10.23842/jif.2017.28.3.003
Lee Sang Ho. "The Choices of R&D Risk in a Mixed Duopoly Market and Privatization Policy" Journal of Insurance and Finance 28, no.3 (2017) : 53-79.doi: 10.23842/jif.2017.28.3.003
