Abstract
What are the welfare economic consequences of alternative methods of assigning research and development costs among technology producers and users?2 We analyze this question, abstracting away from many of the institutional details which exist in a specific business environment and which may be important. Specifically, by means of a general theoretical model, we examine R&D cost assignments to a public utility and its customers which have the most favourable impact on aggregate welfare and consumer surplus.
The author, who accepts responsibility for any errors or omissions, has benefited from E. E. Zajaćs comments on an earlier version of this chapter. The ideas expressed in this chapter are the author’s and are not necessarily Bell System policy.
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© 1983 Jörg Finsinger
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Dansby, R.E. (1983). R&D Cost Allocation with Endogenous Technology Adoption. In: Finsinger, J. (eds) Public Sector Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06504-2_7
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DOI: https://doi.org/10.1007/978-1-349-06504-2_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-06506-6
Online ISBN: 978-1-349-06504-2
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