How risky should an R&D program be?

This paper presents a two-stage model describing the optimal choice of R&D risk among R&D programs with the same expected outcome. It demonstrates that the choice of the highest-risk R&D program is a dominant strategy under Bertrand or Cournot competition.

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Year of publication:	2008
Authors:	Tishler, Asher
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 99.2008, 2, p. 268-271
Publisher:	Elsevier

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005257587