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has been cited by the following article:

• TITLE: Research and Development Cooperation between Rivals: A Novel Motive beyond New Knowledge

  AUTHORS: Le Duc Niem

  KEYWORDS: Product Quality, R&D Cooperation, Knowledge, Motive

  JOURNAL NAME: Technology and Investment, Vol.2 No.1, February 25, 2011

  ABSTRACT: The paper examines a motive for R&D cooperation with a rival by considering the behavior of a quality follower in a model of vertically differentiated products. We show that, in some settings, a quality follower has an incentive to contribute money to R&D activity of a quality leader with the sole purpose of making the leader’s products even better. The reason behind this motivation is that the leader’s product quality is serving as an upper-constraint in the decision process of the follower regarding product quality selection. Thus, if the leader’s product quality is raised both firms will be better off.