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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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
