THE EFFECT OF MARKETING COOPERATIVES ON COST-REDUCING PROCESS INNOVATION ACTIVITY



Table 3. Subgame Perfect Equilibrium in the Mixed Oligopsony when the IOF is a Monopsonist in
Stage 3

Pre-innovation Stage (Stage 1)

wC(1)

pC -c

wI(1)

1

2 ( Pc + Pi - 2 c - t )

xC(1)

3t + Pc - Pi

4 t

xI(1)

t+ Pi - Pc

4 t

Innovation Stage (Stage 2)

rC

0

1

rI

ψ

1

rT

ψ

Post-innovation Stage (Stage 3)

wC(3)

_

wI(3)

Pc + t- c

xC(3)

0

xI(3)

1



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