|
|
|
|
||||
|
||||
Competition in Product Design: An Experiment Exploring Innovation BehaviorUwe CantnerUniversity of Jena - Economics Department Werner GuthMax Planck Institute of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Andreas NicklischMax Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods Torsten WeilandMax Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics May 7, 2007 Jena Economic Research Paper No. 2007-014 Abstract: We experimentally investigate competition in innovation in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, engaging in risky search investments. Successful innovation is rewarded through temporary monopoly rents. Throughout the interaction, subjects receive feedback on own and other's search success and profit margin. Partitioning subjects into subgroups of investor types reveals that the majority of subjects condition investments on the degree of competition as measured by sales shares, while for others no correlation is ascertained. Heterogeneity in individual risk attitudes and differing experiences with related search tasks may explain this finding.
Number of Pages in PDF File: 27 Keywords: innovation, competition, imitation, patent race JEL Classification: D81, L11, O31 working papers seriesDate posted: October 5, 2007 ; Last revised: October 16, 2007Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 1.047 seconds
