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PATTERNS OF TECHNOLOGICAL LEADERSHIP A SIMPLE MODEL WITH UNCERTAINTY
Author(s) -
Delbono F.
Publication year - 1989
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1989.tb00453.x
Subject(s) - probabilistic logic , dominance (genetics) , duopoly , simple (philosophy) , economics , microeconomics , technological change , market structure , sequence (biology) , industrial organization , mathematical economics , computer science , cournot competition , artificial intelligence , macroeconomics , biology , biochemistry , philosophy , genetics , epistemology , gene
ABSTRACT This paper aims at combining dynamics and uncertainty in a simple model designed to investigate the relationship between market structure and innovation. We consider the case of two firms competing in a sequence of cost‐reducing technological races under uncertainty on the rival's R & D effort. Within an asymmetric duopoly it is shown under which conditions the expected evolution of technological leadership follows a pattern of Probabilistic Action‐Reaction or Probabilistic Increasing Dominance.