This paper investigates equilibrium R&D investment strategies of firms endowed with different innovation potentials. To address this issue, this paper permits two stages of innovation and develops a simple stochastic game model involving two firms. It is shown that in equilibrium, a leader in...

Manufacturers in a high-tech durable product industry may have to make operational decisions in the presence of uncertainties associated with product demand and supplier’s wholesale price. In this paper, the authors investigate the impact of such uncertainties on the activities of a...