Highfill, Jannett; McAsey, Michael - In: The Journal of Economics 36 (2010) 1, pp. 29-54
Consider a dynamic duopoly model where R&D spending is used to increase the reliability of a firm's product under two competitive scenarios: the home firm competes with a "complacent" foreign firm that does no R&D whatsoever or with a "lockstep" foreign firm that improves its product at exactly...