Innovation timing games: a general framework with applications |
| |
Authors: | Heidrun C. Hoppe Ulrich Lehmann-Grube |
| |
Affiliation: | a Department of Economics, University of Bonn, Economic Theory II, Lennéstr. 37, D-53113 Bonn, Germany b Department of Economics, University of Hamburg, Von-Melle-Park 5, D-20146 Hamburg, Germany |
| |
Abstract: | We offer a new algorithm for analyzing innovation timing games. Its main advantage over the traditional approach is that it applies to problems that had previously been intractable. We use the algorithm to examine two classical innovation problems. We find that the competition takes the form of a waiting game with a second-mover advantage either for any level of R&D costs (process innovation) or for high R&D costs (product innovation). Moreover, both models predict that the second-mover advantage is monotonically increasing in the costs of R&D. |
| |
Keywords: | L13 O31 O33 |
本文献已被 ScienceDirect 等数据库收录! |
|