Increasing Dominance With No E ± ciency E ® ect Lu

@inproceedings{Cabral2000IncreasingDW,
  title={Increasing Dominance With No E ± ciency E ® ect Lu},
  author={Lu¶3s M B Cabral},
  year={2000}
}
I uncover a new force towards increasing dominance (the property whereby, in dynamic games, the leader tends to increase her lead in expected terms). The new e®ect results from the strategic choice of covariance in races. I assume that players must choose not the amount of resources to spend but how to allocate those resources. I show that the laggard has an incentive to chose a di®erent path from the leader. In equilibrium, this results in the laggard choosing a less promising path, in e®ect… CONTINUE READING

From This Paper

Topics from this paper.

Citations

Publications citing this paper.

References

Publications referenced by this paper.
Showing 1-10 of 10 references

A Model of Dynamic R&D Competition With Endogenous Innovation Targets and Leapfrogging," Universidade Cat¶olica Portuguesa, February

Hoernig, Steffen
1999

Football, Sailing, and R&D: Dynamic Competition With Strategic Choice of Variance and Covariance," http://www.stern.nyu.edu/»lcabral

Cabral, B Lu¶3sM
1999

Entry, Exit, Growth, and Innovation over the Product Life Cycle,

Klepper, Steven
American Economic Review • 1996

A Model of the Evolution of Duopoly: Does the Asymmetry Between Firms Tend to Increase or Decrease?,

Budd, Christopher, Christopher Harris, John Vickers
Review of Economic Studies • 1993

Is the Market Biased Against Risky R&D?,

Klette, Tor Jakob, David de Meza
Rand Journal of Economics 17, • 1986

Portfolio Choice in Research and Development,

Bhattacharya, Sudipto, Dilip Mookherjee
Rand Journal of Economics • 1986

Preemptive Patenting and the Persistence of Monopoly Power,

Gilbert, J Richard, David M G Newbery
American Economic Review • 1982

Industry Structure and Cost-Reducing

Flaherty, M Therese
Investment," Econometrica • 1980

\ Industry Structure and CostReducing Investment

J Richard, David M G Newbery
1980

Similar Papers

Loading similar papers…