Duopoly innovation under product externalities
نویسندگان
چکیده
منابع مشابه
Dynamic Duopoly Competition with Switching Costs and Network Externalities
This paper analyzes competition in a two-period differentiated-products duopoly in the presence of both switching costs and network effects. Consumers are assumed to have rational expectation about network sizes, and future prices. The equilibrium prices in both periods are lower than markets with just switching costs and they decrease with the magnitude of network effects. Hence, in any period...
متن کاملCSR in an Asymmetric Duopoly with Environmental Externalities
We investigate a linear state di¤erential game describing an asymmetric Cournot duopoly with capacity accumulation à la Ramsey and a negative environmental externality (pollution), in which one of the rms has adopted corporate social responsibility (CSR) in its statute, and therefore includes consumer surplus and the environmental e¤ects of production in its objective function. If the market i...
متن کاملProcess Innovation, Product Differentiation, and Channel Structure: Strategic Incentives in a Duopoly
In this paper we analyze the joint implications of two effects: (a) inserting independent profit-maximizing retailers into the channel system provides “buffering” to the manufacturers from price competition when their products are highly substitutable and intrachannel contracts are observable (as shown by McGuire and Staelin 1983 under the assumption of constant marginal production costs), and,...
متن کاملInnovation and imitation incentives in dynamic duopoly
We study entry in a growing market by ex-ante symmetric duopolists when sunk costs differ for the innovating and imitating firm. Strategic competition takes the form either of a preemption race or of a war of attrition, the latter being likelier when demand uncertainty is high. Industry value is maximized when firms seek neither to race nor to delay investment. Free imitation is socially costly...
متن کاملEndogenous Choice of Capacity and Product Innovation in a Di¤erentiated Duopoly¤
We model a symmetric duopoly where ...rms choose whether to be quantity setters or price setters by deciding the optimal capacity; undertake R&D activity to determine the degree of di¤erentiation; and ...nally compete in the market. Two games are proposed, where investment decisions follow di¤erent sequences. We assess price and quantity decisions, ...nding a set of equilibria where the choice ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economic Research-Ekonomska Istraživanja
سال: 2014
ISSN: 1331-677X,1848-9664
DOI: 10.1080/1331677x.2014.952092