IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

On the Reswitching and Convergence Properties of Research & Development Rivalry

Listed author(s):
  • Tom K. Lee

    (University of California, San Diego)

Registered author(s):

    Under an alternate assumption of the payoff function, we analyze Lee's dynamic game model of R&D rivalry. Both similarities and differences in the equilibrium results of the model are obtained. It is shown that both the reswitching property and the convergence property of R&D rivalry are robust under the alternate assumption. The reswitching property of R&D rivalry states that after gaining a technological edge against a rival, a decision maker stops doing R&D and he will resume doing R&D when his rival succeeds in narrowing the technological gap between the two rivals. The convergence property of R&D rivalry states that when the technology levels of two rivals differ by a wide margin, the one with a lower technology level will be the only one doing R&D to narrow the technological gap between the two rivals. This formalizes the perception of R&D managers that the R&D decision of one firm should depend on the R&D decision of its rivals for competitive reasons. Moreover, when multiple Nash equilibria exist, a different pair of equilibria is obtained under the alternate assumption. Insights to an antitrust puzzle relevant to managers are provided. Finally, this paper provides an explanation of why the market shares of firms in an industry may differ. At stationary states of technologies, asymmetric technologies (market shares) are expected.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 30 (1984)
    Issue (Month): 2 (February)
    Pages: 186-197

    in new window

    Handle: RePEc:inm:ormnsc:v:30:y:1984:i:2:p:186-197
    Contact details of provider: Postal:
    7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA

    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:30:y:1984:i:2:p:186-197. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.