How risky should an R&D program be?
Economics Letters, 2008, vol. 99, issue 2, 268-271
This paper presents a two-stage model describing the optimal choice of R&D risk among R&D programs with the same expected outcome. It demonstrates that the choice of the highest-risk R&D program is a dominant strategy under Bertrand or Cournot competition.
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:99:y:2008:i:2:p:268-271
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