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Business

Honors Theses

2014

Dominance

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Incentive To Innovate: Dynamic Optimization Strategy In The Case Of A Symmetric Duopoly, Jigme Norbu Jun 2014

Incentive To Innovate: Dynamic Optimization Strategy In The Case Of A Symmetric Duopoly, Jigme Norbu

Honors Theses

Technological dominance and spillovers play important roles in a firm’s decision to investment in innovated products. It is intuitive to think that a firm which is technologically ahead will dominate the market for innovated products. However, the question of the spillover advantage a firm gets when they are technologically behind makes the decision to invest in new technology more complex. Therefore, in this paper, I consider the investment in new product and cost of doing research, along with capital and level of technology, to be primary factors affecting a firm’s profit. I ask, when is it a good time to …