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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...
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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.
- Spring '08