Econ 483_Lecture 8_Process innovation_Bertrand

99 econ483 econ of innovation technology evangelia

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. R&D investment & Bertrand competition Lecture 8: Bertrand competition, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Strategic investment & Bertrand competition A …rm invests in Research & Development (R&D) to decrease its marginal cost and obtain a competitive advantage. Timing of the game: Stage 1 Stage 2 A …rm (say: …rm 1) makes an R&D investment. Firms compete à la Bertrand...
View Full Document

This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

Ask a homework question - tutors are online