Dynamic Noncooperative Firms R&D Strategies in an Oligopolistic Industry
This paper deals with an oligopolistic industry where firms are engaged in R&D activity in order to maximize their market shares. The existence of an optimal R&D strategy for each firm is discussed using dynamic noncooperative game theory. Furthermore, the intertemporal relations among firms R&D investments, the unit costs of their outputs and their market shares are analyzed in connection with the extra-industry R&D activity and the spillover effect.
KeywordsNash Equilibrium Market Share Absorptive Capacity Technological Knowledge Static Game
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