Pastor, M. and J. Sandonís
Journal of Economic Behavior and Organization – 42 (2000) 385-404
Keywords: Cooperative R&D, R&D subsidies, Public disclosure of subsidies.
Abstract: This paper analyzes in a theoretical framework, including asymmetric information and uncertainty first, why firms participating in cooperative research projects may be interested in hiding information about own subsidies to their partners and second, whether the public disclosure of subsidies would be welfare improving. We show that the answers to those questions depend mainly on whether the efforts are strategic complements or substitutes and on the way in which the firms ex-ante share the total expected profits from the project.