This paper deals with a duopolistic industry where firms are engaged in cost-reducing R&D activity in order to maximize their market shares. Firms' R&D competition is characterized as a dynamic noncooperative feedback game where the optimal strategies are affected by the extra-industry R&D activity and the degree of intra-industry spillovers. Numerical simulations highlight the importance of the assumptions on the firms' absorptive capacity (to exploit external knowledge) in determining the optimal levels of firms R&D investments. © 1997 Kluwer Academic Publishers.
Campisi, D., Mancuso, P., Nastasi, A. (1997). Cost reduction, competitive pressure and firms' optimal R&D strategies in a duopolistic industry. REVIEW OF INDUSTRIAL ORGANIZATION, 12(2), 259-270.
Cost reduction, competitive pressure and firms' optimal R&D strategies in a duopolistic industry
CAMPISI, DOMENICO;MANCUSO, PAOLO;
1997-01-01
Abstract
This paper deals with a duopolistic industry where firms are engaged in cost-reducing R&D activity in order to maximize their market shares. Firms' R&D competition is characterized as a dynamic noncooperative feedback game where the optimal strategies are affected by the extra-industry R&D activity and the degree of intra-industry spillovers. Numerical simulations highlight the importance of the assumptions on the firms' absorptive capacity (to exploit external knowledge) in determining the optimal levels of firms R&D investments. © 1997 Kluwer Academic Publishers.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
