Product Innovation and Transportation Technology in a Cournot Duopoly

Arbeitspapier

In this paper I will evaluate the strategic behavior of two firms which can activate R&D investments either to process or to product innovation. I will consider a particular kind of process R&D activity, which I will call Transport and Communication R&D and which aims at increasing the net amount of the product that reaches consumers. I will limit my study to a Cournot duopoly setting. The strategic interaction will be therefre axpressed in terms of a two-stage three strategy game, where firms first decide whether to invest in one of the two types of R&D and then they compete in the market by setting quantities. As a result, I will obtain both symmetric and asymmetric equilibria, depending on the relative efficiency of the R&D effert.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Quaderni - Working Paper DSE ; No. 416

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mantovani, Andrea
• Event: Veröffentlichung
• (who): Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
• (where): Bologna
• (when): 2001

Further information

• DOI: doi:10.6092/unibo/amsacta/4883
• Handle: http://hdl.handle.net/10419/159257
• Last update: 10.03.2025, 11:41 AM CET