Innovation in a generalized timing game
We examine innovation as a market-entry timing game with complete information and observable actions. We characterize all pure-strategy subgame perfect equilibria for the two-player symmetric model allowing both the leader's and the followers' payoff functions to be multi-peaked, non-monotonic and discontinuous. We provide sufficient conditions for when the equilibria can be Pareto ranked and when the equilibrium is unique. Economic applications discussed include process and product innovation and the timing of the sale of an asset.
|Date of creation:||Aug 2013|
|Date of revision:||Mar 2015|
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