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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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Volume 1 (2001)

Unilateral Technology Sharing among Competitors in Markets with Heterogeneous Consumers

Shohei YoshidaORCID iD: http://orcid.org/0000-0003-4287-7305 / Cong Pan
  • Corresponding author
  • Institute of Social and Economic Research, Osaka University, Mihogaoka 6-1, Ibaraki, Osaka 567-0047, Japan,
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Published Online: 2017-08-03 | DOI: https://doi.org/10.1515/bejeap-2016-0173

Abstract

This paper explains why some firms share their technology with competitors. We consider a Hotelling market where duopolists sell products with different qualities. This market consists of heterogeneous consumers, comprising three groups in terms of their valuations of product quality. We show that when consumers’ preferences for product quality are sufficiently heterogeneous, a high-quality firm benefits from sharing quality-enhancing technology.

Keywords: technology sharing; competitor collaboration; consumer heterogeneity

JEL Classification: L24; L41; M21

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About the article

Published Online: 2017-08-03


Grant-in- Aid for JSPS Fellows (Grant / Award Number: ‘Grant Number 15J05223’, ‘Grant Number 16J02442’) KAKENHI (Grant / Award Number: ‘Grant Number 15H05728’).


Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, DOI: https://doi.org/10.1515/bejeap-2016-0173.

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