Stability in the patent race contest of Lee and Wilde

Kofi O. Nti ()
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Kofi O. Nti: Department of Management Science and Information Systems, The Pennsylvania State University, University Park, PA 16802-1913, USA

Economic Theory, 1999, vol. 14, issue 1, 237-245

Abstract: To determine how expenditure and profits vary with the number of firms in the patent race contest of Lee and Wilde, it is traditional to impose an ad-hoc stability condition on the best response function. This paper relates the stability condition to the standard myopic adjustment mechanism and shows that a concave hazard rate function with non- increasing hazard rate elasticity is sufficient for the analysis. We provide examples and reveal additional qualitative properties of the Lee and Wilde model.

Keywords: Stability; ·; Patent; race; contests; ·; Lee; and; Wilde; model. (search for similar items in EconPapers)
JEL-codes: C62 O34 (search for similar items in EconPapers)
Date: 1999-07-08
Note: Received: November 15, 1996; revised version: March 25, 1998
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Citations: View citations in EconPapers (4)

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