Moschini, Giancarlo; Yerokhin, Oleg - Iowa State University of Science and Technology <Ames, … - 2006
We develop a dynamic duopoly model of R&D competition to improve the quality of a finalgood. The innovation process is sequential and cumulative, and takes place alongside productionin an infinite-horizon setting. In this context we study the R&D incentive impacts resultingfrom a “research...