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Maximum total welfare versus growth of R&D networks
Journal of Mathematics in Industry ( IF 1.2 ) Pub Date : 2017-08-01 , DOI: 10.1186/s13362-017-0041-0
Mohamad Alghamdi

The aim of this paper is to explore the characteristics of symmetric R&D networks that generate the highest overall welfare in a setting where spillovers between non-cooperating firms are ignored. The relationship between the network population and the outcomes is shown to be sensitive to the market structure. The first result pertains to the features of the successive efficient networks. In a differentiated product market, the consistency of the social and individual benefits is not affected by expanding the network. In contrast, the social benefit in a homogeneous product market limits the cooperation between firms. This in turn creates a gap between individual and social profits (an undesirable area). This gap between the two perspectives is maximized by increasing the network size. The second result concerns the expected improvement in the total welfare with respect to the network size. The results show that the benefit behind expanding the socially optimal structure is maximized when firms belong to a differentiated product market.

中文翻译:

最大总福利与研发网络的增长

本文的目的是探索在非合作公司之间的溢出被忽略的情况下产生最高整体福利的对称研发网络的特征。网络人口与结果之间的关系显示出对市场结构敏感。第一个结果与连续有效网络的特征有关。在差异化产品市场中,扩大网络不会影响社会效益和个人收益的一致性。相反,同质产品市场中的社会利益限制了企业之间的合作。反过来,这又在个人和社会利润之间形成了差距(一个不希望的领域)。通过增加网络规模可以最大程度地扩大这两种观点之间的差距。第二个结果涉及总福利相对于网络规模的预期提高。结果表明,当公司属于差异化产品市场时,扩大社会最优结构的利益最大化。
更新日期:2017-08-01
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