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Persistent link: https://www.econbiz.de/10010343540
We study the design of information disclosure in a dynamic multi-agent research contest, where each agent privately searches for innovations and submits his best to compete for a winner-takes-all prize. We find that although submission is a onetime event for each agent, different disclosure...
Persistent link: https://www.econbiz.de/10012902884
project. Learning through experimentation introduces a bilateral (dynamic) feedback mechanism. For relatively low …
Persistent link: https://www.econbiz.de/10012850214
We investigate the relationship between competition and innovation using a dynamic oligopoly model that endogenizes both the long-run innovation rate and market structure. We use the model to examine how various determinants of competition, such as product substitutability, entry costs, and...
Persistent link: https://www.econbiz.de/10014042417
I develop a dynamic investment game with a "memoryless" R&D process in which an incumbent and an entrant can invest in a new technology, and the entrant can also invest in the old technology. I show that an increase in the probability of successfully implementing a technology can cause the...
Persistent link: https://www.econbiz.de/10013074109
This paper examines the effect of competition on the irreversible investment decisions under uncertainty as a generalization of the "real option" approach. We examine this issue with reference to an industry where each firm has only one investment opportunity which is completely irreversible and...
Persistent link: https://www.econbiz.de/10011325060
We first estimate a dynamic game for the global automobile industry and then compute a Markov Perfect equilibrium to study the equilibrium relationship between market structure and innovation. The key state variable in the model is the efficiency level of each firm and the market structure is...
Persistent link: https://www.econbiz.de/10011084428
Persistent link: https://www.econbiz.de/10001772823
This paper examines the effect of competition on the irreversible investment decisions under uncertainty as a generalization of the “real option” approach. We examine this issue with reference to an industry where each firm has only one investment opportunity which is completely irreversible...
Persistent link: https://www.econbiz.de/10005570363
I find new results for the `Perpetual Race' analyzed in Horner 2004. The 'Perpetual Race' is an infinite horizon stochastic state space game for which Markov Perfect equilibria are characterized. My results characterize equilibrium strategy structure in a previously unexplored parameter region...
Persistent link: https://www.econbiz.de/10014203934