Games Without Winners: Catching-up with Asymmetric Spillovers

Multi-modal differential R&D game with asymmetric players is studied. It demonstrated that under sufficiently there no long-run ‘winner’ in this terms of developed technologies and all try to imitate each other. Moreover, outcome may be the only equilibrium cooperative game. In decentralized setting, additional complex types dynamics are observed: permanent fluctuations around symmetric (pseudo)equilibrium chaotic dynamics. This last possible once strategies interdependent. These new emergent call for regulation tools which shortly discussed. shown solution qualitatively similar any number players, while non-cooperative progressively given asymmetric. Results extended an arbitrary linear-quadratic multi-modal spillovers, structure necessary onset non-deterministic chaos