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R&D INCENTIVES UNDER BERTRAND COMPETITION: A DIFFERENTIAL GAME

โœ Scribed by ROBERTO CELLINI; LUCA LAMBERTINI


Book ID
111102580
Publisher
John Wiley and Sons
Year
2011
Tongue
English
Weight
271 KB
Volume
62
Category
Article
ISSN
1352-4739

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We investigate a linear state differential game of advertising, under Cournot and Bertrand competition. A unique saddlepoint equilibrium exists if the marginal cost of advertising is sufficiently low. Bertrand competition entails more intense advertising than Cournot competition, since increasing ma