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challenger invests more into R&D in order to enter a new market than the incumbent. Thus, the patent racing model by Reinganum …
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This paper develops a three stage oligopoly game for R&D cooperation, R&D expenditure and product market competition. In the first stage, firms decide whether or not to conduct R&D in cooperation with other firms. In the second stage the level of R&D investment is determined. Finally, firms...
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