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Competition in Innovation and Imitation - A Theoretical and Experimental Study -

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Author Info
Uwe Cantner () (University of Jena, Faculty of Economics)
Werner Güth () (Max-Planck-Institute for Research into Economic Systems)
Andreas Nicklisch () (Max-Planck-Institute for Research into Economic Systems)
Torsten Weiland

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Abstract

For given product specifications by two competing firms the demand levels are determined by a randomly generated ideal composition of aspects. Firms can vary some or all aspects of these products, based on information about own (and other's) previous demand. Although the product space is much too large to be explored systematically, we expect (and test for) rather reasonable innovative success and welfare levels due to own innovative attempts and imitation of a successful other. Parameter variations concern the pioneer advantage and search costs.

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Paper provided by Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät in its series Jenaer Schriften zur Wirtschaftswissenschaft with number 01/2004.

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Date of creation: Jan 2004
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Handle: RePEc:jen:jenasw:2004-01

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Related research
Keywords: Innovation; Imitation; Patent Tournament; Trial and Error Process;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
  2. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-93, June. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

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  12. Uwe Cantner & Andreas Nicklisch & Torsten Weiland, 2005. "Innovation races: An experimental study on strategic research activities," Papers on Strategic Interaction 2005-14, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  13. Andreas Freytag & Klaus Winkler, 2004. "The Economics of Self-regulation in telecommunications under sunset legislation," Jenaer Schriften zur Wirtschaftswissenschaft 17/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
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