Title

Process and product R&D by a multiproduct monopolist

Document Type

Journal article

Source Publication

Oxford Economic Papers

Publication Date

10-1-2004

Volume

56

Issue

4

First Page

735

Last Page

743

Abstract

It is shown that the claim in Lambertini that a multiproduct monopolist's incentive for process R&D declines with the number of products it offers is incorrect. This incentive is in fact an increasing function of the number of products in his model. I further extend the model of Lambertini to show that whether or not process R&D incentive and the number of varieties are positively related depends on the degree of scope economies in process R&D. Product innovation promotes process R&D if the degree of such scope economies is high (as in Lambertini), and discourages it if the degree of scope economies is low.

DOI

10.1093/oep/gpf065

Print ISSN

00307653

E-ISSN

14643812

Publisher Statement

Copyright © Oxford University Press 2004

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Recommended Citation

Lin, P. (2004). Process and product R&D by a multiproduct monopolist. Oxford Economic Papers, 56(4), 735-743. doi: 10.1093/oep/gpf065