DELBONO, Flavio; DENICOLÒ, Vincenzo - Institut de Recherche Économique et Sociale (IRES), … - 1991
In this paper we study a one-shot game of R & D between two firms which differ in their incentives to innovate. We analyse this problem when the R & D technology displays smoothly decreasing returns as well as when increasing returns in the form of indivisibilities prevail. In the first case we...