Ferreira, Fernanda A.2014-05-282014-05-282009978-0-7354-0750-9http://hdl.handle.net/10400.22/4388In this paper, we consider a mixed market in which a state-owned welfare-maximizing public (domestic) firm competes against a profit-maximizing private (foreign) firm. We suppose that the domestic firm is less eflScient than the foreign firm. However, the domestic firm can lower its marginal costs by conducting cost-reducing R&D investment. We examine the impacts of entry of a foreign firm on decisions upon cost-reducing R&D investment by the domestic firm and how these affect the domestic welfare.engIndustrial organizationGame theoryMixed duopolySocial welfareconference object10.1063/1.3271624