The paper examines research and development (R&D) tax incentives in oligopolistic markets. The author sets up a simple game-theoretical model to identify the conditions under which the tax incentives serve as a tool to reach the socially desirable level of firm-financed R&D spending.
Link
http://econpapers.hhs.se/scripts/redir.pl?u=http%3A%2F%2Ffmwww.bc.edu%2FEC-P%2FWP597.pdf;h=repec:boc:bocoec:597