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dc.contributor.authorClark, Derek John
dc.contributor.authorMichalsen, Anita
dc.contributor.authorOlsen, Leif Roger
dc.date.accessioned2020-12-15T12:54:52Z
dc.date.available2020-12-15T12:54:52Z
dc.date.issued2020-09-24
dc.description.abstractWe analyze the effect of the European Union Competition Authority’s block exemption towards R&D cooperatives in a horizontal market structure, valid as long as the combined product market share is not too large. Two less efficient firms attempt to catch up with a technological leader, and may use the safe harbour provided by the legislation. We consider when the incentives of the R&D-performing firms are aligned with those of consumers, and when increases in the market share limit improves welfare. We show that an effective policy within this framework might be elusive. The market share restriction must be set in order that it is optimal for firms to use the safe harbour, and that this leads to more R&D than under competition. Even in this case, further increases in the market share restriction can harm welfare. This has widespread implications for how the EU Competition authority should respond to calls for an increase in the market share restriction.
dc.identifier.citationClark, Michalsen, Olsen. The EU block exemption and horizontal R&D agreements. International Journal of the Economics of Business. 2020
dc.identifier.cristinIDFRIDAID 1858699
dc.identifier.doi10.1080/13571516.2020.1823188
dc.identifier.issn1357-1516
dc.identifier.issn1466-1829
dc.identifier.urihttps://hdl.handle.net/10037/20060
dc.language.isoeng
dc.publisherTaylor & Francis
dc.relation.journalInternational Journal of the Economics of Business
dc.rights.holderCopyright 2020 The Author(s)
dc.titleThe EU block exemption and horizontal R&D agreements
dc.typeJournal article
dc.typeTidsskriftartikkel


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