Conditions for government support of private research and development

In a recent paper, Brockhoff and Warschkow attempt to extend Joglekar and Hamburg's work under alternative behavioral assumptions. Brockhoff and Warschkow mainly obtain results that are opposite to Joglekar and Hamburg's findings. Unfortunately, as shown below, Brockhoff and Warschkow's model is flawed because: (1) it is inconsistent with Joglekar and Hamburg's assumption that firms are individually rational, and (2) it misrepresents the concept of Pareto optimality. Consequently, Brockhoff and Warschkow's conclusions cannot be seen as valid.