Dynamic R&D Competition with Learning

David Malueg () and Shunichi O. Tsutsui

RAND Journal of Economics, 1997, vol. 28, issue 4, 751-772

Abstract: To account for the possibility that firms are unsure about the ease of innovation, we formulate a differential game of R&D competition with an unknown hazard rate. We show, as time passes with success, firms become more pessimistic about eventual innovation, reducing their R&D investment and possibly exiting the race. An increase in the number of competing firms tends to increase firms' R&D intensities, for given beliefs, but because beliefs evolve at different rates depending on the number of firms in the race, time paths of R&D investment intensity are not unambiguously ordered with respect to the number of competing firms.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (56)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819972 ... O%3B2-Y&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:randje:v:28:y:1997:i:winter:p:751-772

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().