English, Article, Journal or magazine article edition: First mover advantage in a dynamic duopoly with spillover Gianluca Femminis; Gianmaria Martini

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/209081
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • First mover advantage in a dynamic duopoly with spillover
Author
  • Gianluca Femminis
  • Gianmaria Martini
Physical Description
  • preprint
Notes
  • We present a dynamic duopoly model of technical innovation where R&​D costs decrease exogenously with time, and inter-firm knowledge spillover lowers the second comer's R&​D cost. The spillover effect only becomes available after a disclosure lag. These features allow us to identify a new type of equilibrium: the leader delays investment until the R&​D cost is low enough that the follower finds it optimal to invest as soon as he can benefit from the spillover. This equilibrium is subgame perfect over a wide range of parameters, and raises several interesting implications. First, in our new equilibrium the time delay between the two R&​D investments is realistically short. Second, while the presence of a spillover favors the second mover, this benefit is not enough to rule out a first mover advantage. Indeed, the first mover advantage survives whenever technical progress is sufficiently fast and the disclosure lag is relatively long. Third, in case of a major innovation our equilibrium implies under--investment, which requires a substantial public intervention in favour of the investment activity.
  • R&​D, knowledge spillover, dynamic oligopoly
  • RePEc:ctc:serie6:itemq0955
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment