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The accumulation of knowledge with intra-industry knowledge spillovers: A competition game and the Nash equilibrium based on firm cost minimisation

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  • Vasilios Kanellopoulos

Abstract

This paper examines a competition game whose key variables are the R&D efforts (e.g. R&D expenditures) and accumulated knowledge of firms located in a specific region. The most significant element of accumulated knowledge is knowledge spillovers. These are considered intra-industry as it is assumed that the firms operate within the same industry (i.e. similar types of firms) and competitors offer similar products. The present study identifies a Nash equilibrium based on firm cost minimisation. This is derived under the assumption that the firms under examination act rationally and are primarily concerned with achieving optimal outcomes - specifically, by minimising their total costs.

Suggested Citation

  • Vasilios Kanellopoulos, 2026. "The accumulation of knowledge with intra-industry knowledge spillovers: A competition game and the Nash equilibrium based on firm cost minimisation," Papers 2601.13282, arXiv.org.
    • Handle: RePEc:arx:papers:2601.13282
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