Stochasticity Favoring the Effects of the R&D Strategies of the Firms

• 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; Flávio Ferreira (Author) Other

Book

Title: Intelligent Engineering Systems and Computational Cybernetics

Pages: 415-423

Scientific classification

FOS: Natural sciences > Mathematics

Other information

Authenticus ID: P-00H-02Y

DOI: 10.1007/978-1-4020-8678-6_36

Resumo (PT): We present stochastic 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 observe that, in certain cases, the uncertainty can improve the effects of the R&D strategies in the profits of the firms due to the non-linearity of the profit functions and also of the R&D parameters.

Abstract (EN): We present stochastic 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 observe that, in certain cases, the uncertainty can improve the effects of the R&D strategies in the profits of the firms due to the non-linearity of the profit functions and also of the R&D parameters.

Language: English

Type (Professor's evaluation): Scientific