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The impact of price dispersion on R&D network formation

Pascal Billand et al.

Economic Theory2026https://doi.org/10.1007/s00199-026-01710-7article
AJG 3ABDC A*
Weight
0.50

What the paper says

Abstract We develop a two-stage oligopoly model of price competition in markets with both informed and uninformed (captive) consumers. The model introduces a novel mechanism through which interfirm collaborative R&D influences market outcomes. In particular, the second stage of the game where firms set prices is a supermodular game allowing us to analyze strategic complementarities in pricing behavior. We show that this type of market friction creates a new channel of influence for collaborative R&D. Our analysis reveals how consumer heterogeneity and cost heterogeneity jointly shape the incentives for collaboration among firms, offering new insights into the design of efficient innovation networks in oligopolistic markets.

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https://doi.org/https://doi.org/10.1007/s00199-026-01710-7

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@article{pascal2026,
  title        = {{The impact of price dispersion on R&D network formation}},
  author       = {Pascal Billand et al.},
  journal      = {Economic Theory},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1007/s00199-026-01710-7},
}

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The impact of price dispersion on R&D network formation

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.