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This study investigates the R&D risk choices in a differentiated duopoly, in which a firm has partial passive ownership holdings (P.P.O.s) in its rival. Firms perform R&D projects with identical expected outcomes but different risk degrees. It mainly finds that: (1) the P.P.O.s make both firms more willing to take R&D risks; (2) compared with the firm which owns a share of its rival, its partially owned rival is more willing to take R&D risks; (3) for both firms, their private incentive for R&D risk is lower than the social incentive. However, the P.P.O.s may make the private optimum closer to the social optimum.

This paper considers environmental R&D (ER&D) of clean technology for reducing pollutant emissions in a polluting mixed duopoly and analyzes partial privatization’s impacts on ER&D, environment and welfare. In the situation that environmental taxes are exogenously given, it finds that the impacts of privatization policy on ER&D and environment critically depend on the level of environmental damage. However, regardless of the marginal damage, an appropriate partial-privatization policy can increase social welfare. In addition, it also considers an endogenously determined optimal environmental tax and shows that if the marginal damage is high, partial privatization’s impacts on ER&D, environment and social welfare may be not the same as the exogenous environmental tax situation

This paper considers environmental R&D (ER&D) of clean technology for reducing pollutant emissions in a polluting mixed duopoly and analyzes partial privatization’s impacts on ER&D, environment and welfare. In the situation that environmental taxes are exogenously given, it finds that the impacts of privatization policy on ER&D and environment critically depend on the level of environmental damage. However, regardless of the marginal damage, an appropriate partial-privatization policy can increase social welfare. In addition, it also considers an endogenously determined optimal environmental tax and shows that if the marginal damage is high, partial privatization’s impacts on ER&D, environment and social welfare may be not the same as the exogenous environmental tax situation

We introduce the environmental attitudes of the public firm into a polluting mixed duopoly and then examine the effects of privatization on the environmental R&D (ER&D), the environmental quality and the social welfare. The government levies an exogenous environmental tax on pollution and both firms adopt the cleaner production technology to reduce emissions. We mainly find that, when the public firm cares less about the environment, privatization can induce both firms’ ER&D and better the environment. However, the opposite may appear when the public firm cares much for the environment. In addition, whether privatization improves or reduces the social welfare in the case of high marginal environmental damage depends on the environmental attitudes of the public firm and the environmental tax rates.

We introduce the environmental attitudes of the public firm into a polluting mixed duopoly and then examine the effects of privatization on the environmental R&D (ER&D), the environmental quality and the social welfare. The government levies an exogenous environmental tax on pollution and both firms adopt the cleaner production technology to reduce emissions. We mainly find that, when the public firm cares less about the environment, privatization can induce both firms’ ER&D and better the environment. However, the opposite may appear when the public firm cares much for the environment. In addition, whether privatization improves or reduces the social welfare in the case of high marginal environmental damage depends on the environmental attitudes of the public firm and the environmental tax rates.

Purpose: A growing number of open source software emerges in many segments of the software market. In addition, software products usually exhibit network externalities. The purpose of this paper is to study the impact of open source software on the quality strategies of proprietary software vendors when the market presents positive network externalities. Design/methodology/approach: To analyze how open source software affects the quality of proprietary software, this paper constructs two vertical differentiation models: the basic model considers proprietary software monopolizing the market, and the extended model considers proprietary software competing with open source substitute. Findings: This paper mainly finds that the presence of open source software does not necessarily lead to the improvement of proprietary software quality. The network externalities and the compatibility between open source and proprietary software can change the impact of open source software on the quality of proprietary software and affect the quality strategies of proprietary software vendors under certain conditions. Originality/value: The main contribution of this paper is to examine the effect of open source software on the quality strategies for proprietary software vendors in software markets with network externalities., Peer Reviewed

Purpose: A growing number of commercial open source software, based on community open source, appears in many segments of the software market. The purpose of this study is to investigate how commercial open source software affects the pricing (market share or profit) of proprietary software producer, consumer surplus and social welfare. Design/methodology: To analyze the impact of commercial open source software on proprietary software producer, this study constructs two vertical-differentiation models: the basic model considers proprietary software only competing with community open source software, and its extended one considers proprietary software competing with both community and commercial open source software. Findings: This study mainly finds that the presence of commercial open source software can lead to the decrease of the software price and profit for proprietary software producer, while the consumer surplus and social welfare will be increased. However, it does not necessarily cause the decline in the market share for proprietary software producer. Originality/value: The main contribution of this study is to examine the effect of commercial open source software on the competitive strategies of proprietary software producer, consumer surplus and social welfare, Peer Reviewed