Hoppe, Heidrun C.; Lehmann-Grube, Ulrich - In: Journal of Economics & Management Strategy 10 (2001) 3, pp. 419-433
This paper explores a dynamic model of product innovation, extending the work of Dutta, Lach, and Rustichini (1995). It is shown that if R&D costs for quality improvements are low, the dynamic competition is structured as a race for being the pioneer firm with payoff equalization in equilibrium,...