标题：R&D competition in a spatial model with technical risk
作者：Li, Changying; Zhang, Jianhu
作者机构：[Li, Changying; Zhang, Jianhu] Shandong Univ, Sch Econ, Jinan 250100, Shandong, Peoples R China.
通讯作者地址：[Li, CY]Shandong Univ, Sch Econ, 27 Shanda South Rd, Jinan 250100, Shandong, Peoples R China.
来源：PAPERS IN REGIONAL SCIENCE
关键词：R&D; location choice; spatial competition; technical risk
摘要：In this paper, we introduce stochastic R&D into a Hotelling model with two duopolists. With an emphasis on the interaction between firms' R&D decision and location choice, we compare socially and privately optimal locations and levels of R&D. We show that, depending on R&D cost and the degree of technical risk, equilibrium location varies from minimum differentiation to maximum differentiation. From a welfare perspective, the equilibrium distance between the two firms could be either closer, farther or socially best. Moreover, depending on cost structure, firms' R&D expenditures could be either higher, lower or socially optimal, from a welfare viewpoint.