Cournot Duopoly with competition in the R&D expenditures

Abstract

We present a new R&D investment in a Cournot Duopoly model and we analyze the different possible types of Nash R&D investments. We observe that the new production costs region can be decomposed in three economical regions, depending on the Nash R&D investment, showing the relevance of the use of patents in new technologies. (© 2008 WILEY‐VCH Verlag GmbH & Co. KGaA, Weinheim)