Stochasticity Favoring the Effects of the R&D Strategies of the Firms
We present stochastic dynamics on the production costs of Cournot competitions, based on perfect Nash equilibria of nonlinear R&D investment strategies to reduce the production costs of the firms at every period of the game. We analyse the effects that the R&D investment strategies can have in the profits of the firms along the time. We observe that, in certain cases, the uncertainty can improve the effects of the R&D strategies in the profits of the firms due to the non-linearity of the profit functions and also of the R&D parameters.
Unable to display preview. Download preview PDF.
- 1.Amir R, Evstigneev I, Wooders J (2001) Noncooperative versus cooperative R&D with endogenous spillover rates. Core Discussion Paper 2001/50, Louvain-la-Neuve, BelgiumGoogle Scholar
- 4.Pinto AA, Oliveira B, Ferreira FA, Ferreira M (2007) Investing to survive in a duopoly model. In: Machado JT, Patkai B, Rudas IJ (eds) Intelligent Engineering Systems and Computational Cybernetics. Springer, New YorkGoogle Scholar