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IT IS NOT CLEAR TO ME HOW WE GOT THESE FOCS!
I DON"T KNOW WHERE THE SECOND BRACKET TERM COMES FROM!
Katz (1986) - An Analysis of Cooperative Research and Development (view source)
Revision as of 19:51, 7 December 2010
, 19:51, 7 December 2010no edit summary
With a strict inequality in each case iff <math>r_i = 0\;</math>
:<math>\frac{d \pi(r)}{d r_i} = V_i^i(c)c'(z_i)(1+\overline{\phi}(n-1))(1 + (n-1) \rho(c)) - 1\;</math>
Comparing this with the FOC from the development stage, when every firm is a member:
There are further specific examples in the paper, including Cournot competition.
===Imperfect Substitutes===
