| Author: | Giovannetti, E. |
| Title: | Perpetual leapfrogging in Bertrand duopoly |
| Journal: | International Economic Review
2001 : AUG, VOL. 42:3, p. 671-696 |
| Index terms: | Econometric models Duopoly Markov chains |
| Language: | eng |
| Abstract: | The author considers different patterns of infinite technological adoption choices by firms in a Bertrand duopoly. Every period technological progress provides a sequence of cost reducing innovations. The equilibrium concept is Markov perfect equilibrium. The author analyzes conditions for which equilibrium leads to persistent leadership and those where firms alternate in adoption inducing leapfropping. |
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