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Government–enterprise revenue matrix.
| Government | Enterprise | |
|---|---|---|
| R&D (y) | No-R&D (R&D: Research and Development) (1 − y) | |
| regulation (x) |
Rg1 + Rg4 − S − Cg Re1 + S − Ce1 |
Rg2 + Rg4 − Cg + θ[βP − (1 − β)S] Re2 − Ce2 − θ[βP − (1 − β)S] |
| no-regulation (1 − x) |
Rg1 − S Re1 + S − Ce1 |
Rg2 − θS Re2 − Ce2 + θS |
