Klette, Tor; Meza, David de - In: RAND Journal of Economics 17 (1986) 1, pp. 133-139
This article analyzes the riskiness of the R&D strategies chosen by firms engaged in a "winner-takes-all" patent race. In contradiction to Dasgupta and Stiglitz (1980) we show that, when the distribution of invention times is symmetric, the market equilibrium cannot be safer and may be riskier...