Grieben, Wolf-Heimo (contributor) - 2006
entry into R&D races, optimal R&D investment sat-
isfies
() ( ) ( ) 1
IRNI
vswqω ωη=−⋅⋅ . (12)
Since product quality q …, optimal R&D investment satisfies
( ) ( )
CSC
vwqω ωη=⋅ . (16)
The Southern no-arbitrage equation equivalent to (13) is
9 …