Investing to Survive in a Duopoly Model

• Type: Chapter or Part of a Book
• Date: 2009

Authors

Alberto A. Pinto (Author) FCUP; Bruno M. P. M. Oliveira (Author) Other; Fernanda A. Ferreira (Author) Other; Miguel Ferreira (Author) Other

Book

Title: Intelligent Engineering Systems and Computational Cybernetics

Pages: 407-414

Scientific classification

FOS: Natural sciences > Mathematics

Other information

Authenticus ID: P-00H-02X

DOI: 10.1007/978-1-4020-8678-6_35

Resumo (PT): We present deterministic dynamics on the production costs of Cournot competitions, based on perfect Nash equilibria of nonlinear R&D investment strategies to reduce the production costs of the firms at every period of the game. We analyse the effects that the R&D investment strategies can have in the profits of the firms along the time. We show that small changes in the initial production costs or small changes in the parameters that determine the efficiency of the R&D programs or of the firms can produce strong economic effects in the long run of the profits of the firms.

Abstract (EN): We present deterministic dynamics on the production costs of Cournot competitions, based on perfect Nash equilibria of nonlinear R&D investment strategies to reduce the production costs of the firms at every period of the game. We analyse the effects that the R&D investment strategies can have in the profits of the firms along the time. We show that small changes in the initial production costs or small changes in the parameters that determine the efficiency of the R&D programs or of the firms can produce strong economic effects in the long run of the profits of the firms.

Language: English

Type (Professor's evaluation): Scientific