Abstract
We characterize equilibrium investments in basic research by the commercial and university sectors contingent on public funding of the university. We find that firms invest in basic research despite the opportunities for free riding and we present conditions under which firms even have incentives to augment the public funding to the university. We characterize the socially optimal volume of public funding for the university sector. Finally, we compare total investments in a mixed duopoly with those of duopolies composed of two universities as well as two profit‐maximizing firms.
| Original language | English |
|---|---|
| Peer-reviewed scientific journal | Journal of Public Economic Theory |
| Volume | 22 |
| Issue number | 4 |
| Pages (from-to) | 1017-1040 |
| Number of pages | 24 |
| ISSN | 1097-3923 |
| DOIs | |
| Publication status | Published - 09.03.2020 |
| MoE publication type | A1 Journal article - refereed |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 12 Responsible Consumption and Production
Keywords
- 511 Economics
Fingerprint
Dive into the research topics of 'University-firm competition in basic research and university funding policy'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver