FILIPPINI, LUIGI; MARTINI, GIANMARIA - In: International Game Theory Review (IGTR) 12 (2010) 02, pp. 139-159
This paper investigates the strategic choice between introducing a process or a product innovation in a duopoly model with vertical differentiation, comparing the outcomes in case of Bertrand and Cournot competition. It is shown that under both competitive regimes three equilibria in innovation...