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Open Innovation in a Dynamic Cournot DuopolyIrina HasnasUniversity of Bologna - Department of Economics Luca LambertiniUniversity of Bologna - Department of Economics Arsen PalestiniMEMOTEF - Sapienza University of Rome June 8, 2011 Quaderni DSE Working Paper No. 753 Abstract: We analyze an Open Innovation process in a Cournot duopoly using a differential game approach where knowledge spillovers are endogenously determined via the R&D process. The game produces multiple steady states, allowing for an asymmetric solution where a firm may trade off the R&D investment against information absorption from the rival.
Number of Pages in PDF File: 25 Keywords: R&D, spillovers, dynamic games JEL Classification: C73, L13, O31 working papers seriesDate posted: June 11, 2011Suggested CitationContact Information
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