One New Technology and Symmetric Firms

  • Kuno J. M. Huisman
Part of the Theory and Decision Library book series (TDLC, volume 28)

Abstract

This chapter considers a framework with two identical firms which both have the possibility to make an investment that increases their payoff. By how much this payoff is raised is not known beforehand, since the future market conditions for the firm’s products are uncertain. Both firms operate on the same output market which implies that the investment decision of one firm affects the payoff of the other firm. By analyzing this model uncertainty is combined with strategic aspects.

Keywords

Output Market Strategic Interaction Technology Investment Strategic Option Duopoly Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Kuno J. M. Huisman
    • 1
  1. 1.Centre for Quantitative Methods CQM B.V.EindhovenThe Netherlands

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