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

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

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

OSS delle Nazioni Unite

Questo processo contribuisce al raggiungimento dei seguenti obiettivi di sviluppo sostenibile

Accesso al documento

10.1016/j.jedc.2018.01.024

Altri file e collegamenti

Cita questo

@article{861e4018f0f04a24af8b701ee5ab3ce7,

title = "Dynamic analysis of discontinuous best response with innovation.",

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{\textquoteright} initial expectations regarding the rivals level of output are crucial in defining the configuration of the long run equilibrium.",

keywords = "Discontinuous best response functions, Global analysis, Learning, Oligopolistic competition, Process innovation, Discontinuous best response functions, Global analysis, Learning, Oligopolistic competition, Process innovation",

author = "Lamantia, \{Fabio Giovanni\} and Mario Pezzino and Fabio Tramontana",

year = "2018",

doi = "10.1016/j.jedc.2018.01.024",

language = "English",

volume = "91",

pages = "120--133",

journal = "Journal of Economic Dynamics and Control",

issn = "0165-1889",

publisher = "Elsevier",

number = "91",

}

TY - JOUR

T1 - Dynamic analysis of discontinuous best response with innovation.

AU - Lamantia, Fabio Giovanni

AU - Pezzino, Mario

AU - Tramontana, Fabio

PY - 2018

Y1 - 2018

N2 - 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.

AB - 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.

KW - Discontinuous best response functions

KW - Global analysis

KW - Learning

KW - Oligopolistic competition

KW - Process innovation

KW - Discontinuous best response functions

KW - Global analysis

KW - Learning

KW - Oligopolistic competition

KW - Process innovation

UR - https://publicatt.unicatt.it/handle/10807/110242

UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=85042153481&origin=inward

UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85042153481&origin=inward

U2 - 10.1016/j.jedc.2018.01.024

DO - 10.1016/j.jedc.2018.01.024

M3 - Article

SN - 0165-1889

VL - 91

SP - 120

EP - 133

JO - Journal of Economic Dynamics and Control

JF - Journal of Economic Dynamics and Control

IS - 91

ER -

Dynamic analysis of discontinuous best response with innovation.

Abstract

All Science Journal Classification (ASJC) codes

Keywords

OSS delle Nazioni Unite

Accesso al documento

Altri file e collegamenti

Fingerprint

Cita questo