Dynamic analysis of discontinuous best response with innovation.

Fabio Giovanni Lamantia; Mario Pezzino; Fabio Tramontana

doi:10.1016/j.jedc.2018.01.024

Dynamic analysis of discontinuous best response with innovation.

Fabio Giovanni Lamantia^*
, Mario Pezzino
, Fabio Tramontana

^*Autore corrispondente per questo lavoro

Facoltà di Economia

University of Calabria
University of Manchester

Risultato della ricerca: Contributo in rivista › Articolo › peer review

1 Citazioni (Scopus)

Abstract

Starting from the static analysis in Eckert et al. (2017), we study a Cournot duopoly where firms can decide to incur fixed costs in activities that improve their competitiveness (i.e. product development or process innovation). Innovation costs generate discontinuities in the firms quantity best response functions and, in turn, a variety of equilibrium configurations, including multiple equilibria. We provide a dynamic global analysis of the equilibria and show the way in which firms’ initial expectations regarding the rivals level of output are crucial in defining the configuration of the long run equilibrium.

Lingua originale	Inglese
pagine (da-a)	120-133
Numero di pagine	14
Rivista	Journal of Economic Dynamics and Control
Volume	91
Numero di pubblicazione	91
DOI	https://doi.org/10.1016/j.jedc.2018.01.024
Stato di pubblicazione	Pubblicato - 2018

OSS delle Nazioni Unite

Questo processo contribuisce al raggiungimento dei seguenti obiettivi di sviluppo sostenibile

SDG 9 Imprese, innovazione e infrastrutture

All Science Journal Classification (ASJC) codes

Economia ed Econometria
Controllo e Ottimizzazione
Matematica Applicata

Keywords

Discontinuous best response functions
Global analysis
Learning
Oligopolistic competition
Process innovation

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Dynamic analysis of discontinuous best response with innovation.

Abstract

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All Science Journal Classification (ASJC) codes

Keywords

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