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

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  • Uwe Cantner
  • Werner Gueth
  • Andreas Nicklisch
  • Torsten Weiland

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 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.

Suggested Citation

  • Uwe Cantner & Werner Gueth & Andreas Nicklisch & Torsten Weiland, 2003. "Competition in Innovation and Imitation - A Theoretical and Experimental Study -," Papers on Strategic Interaction 2004-02, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2004-02
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    References listed on IDEAS

    as
    1. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    2. 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 569-596, September.
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    Cited by:

    1. Uwe Cantner & Andreas Nicklisch & Torsten Weiland, 2005. "Innovation races: An experimental study on strategic research activities," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 17/2005, Friedrich Schiller University of Jena, School of of Economics and Business Administration.

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    More about this item

    Keywords

    Innovation; Imitation; Patent Tournament; Trial and Error Process;
    All these keywords.

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