Question
Consider 2 firms A and B, having different benefits from doing R&D. Suppose that the patent is worth $12 to firm B, but $20 to
Consider 2 firms A and B, having different benefits from doing R&D. Suppose that the patent is worth $12 to firm B, but $20 to firm A. The cost of moving 1, 2, and 3 steps are $4, $10, and $15 respectively. Denote firm's research positions (using intergers such as 1, 2, 3) at the southwest corner of Trigger Zone I
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
