Friday, July 22, 2011
Posted by D. Daniel Sokol
Irina Hasnas, Department of Economics, University of Bologna, Luca Lambertini, ENCORE, University of Amsterdam and Arsen Palestini MEMOTEF, University of Rome ”La Sapienza”explore Open Innovation in a Dynamic Cournot Duopoly.
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.