Innovation in a generalized timing game

• Autores: Vladimir Smirnov, Andrew Wait
• Localización: International journal of industrial organization, ISSN 0167-7187, Vol. 41, Nº. 0, 2015, págs. 23-33
• Idioma: inglés
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• Resumen

  • We examine innovation as a market-entry timing game with complete information and observable actions. We characterize all pure-strategy subgame perfect equilibria for the two-player symmetric model allowing both the leader’s and the follower’s payoff functions to be multi-peaked, non-monotonic and discontinuous. We provide sufficient conditions for when the equilibria can be Pareto-ranked and when the equilibrium is unique. Economic applications discussed include process and product innovation and the timing of the sale of an asset