Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158895
Authors: 
Delbono, Flavio
Denicolò, Vincenzo
Year of Publication: 
1988
Series/Report no.: 
Quaderni - Working Paper DSE 52
Abstract: 
In this paper we study a one-shot game of R&D between two price-setting firms that are asymmetrically placed as they produce at different cost levels. The R&D technology displays increasing returns in the form of invisibilities. We show that there exists a unique equilibrium in pure strategies, and we prove that the incumbent has never greater probability of winning the patent race than the rival.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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