A study on duopoly enterprises' RD Strategy based on network externalities

摘要

Based on D Aspremont & Jacquemin (1988) model, this paper studied the R&D Strategies of duopoly firms of network externalities. Firstly it had found out that with the network externalities increasing, the enterprises' R&D investment, the enterprises' product quantity and the social welfare increased Secondly when two enterprises chose the R&D cooperation, two enterprises' profits increased with the network externalities increasing. When two enterprises chose the R&D competition, two enterprises' profits increased with the weak network externalities increasing, two enterprises' profits decreased with the strong network externalities increasing. Lastly it had found out that R&D RJV was the optimal Strategy in which enterprises' R&D investment, enterprises' product quantity, enterprises' profit and social welfare all got the maximum. So R&D RJV should be encouraged and R&D Cartel should be regulated by our government