Yap, Yee Jiun; Luckraz, Shravan; Tey, Siew Kian - In: Economic Modelling 39 (2014) C, pp. 8-18
This paper constructs an ex-ante asymmetric R&D Cournot differential game with knowledge spillovers. It shows that in the long-run equilibrium firms have incentives to innovate as long as the knowledge externalities are bidirectional. We also carry out a series of numerical simulations of the...