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This paper explores a dynamic model of product innovation, extending the work of Dutta, Lach and Rustichini (1995). It is shown that if R&D costs for quality improvements are low, the dynamic competition is structured as a race for being the pioneer firm with payoff equalization in equilibrium,...
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This paper explores a dynamic model of product innovation, extending the work of Dutta, Lach and Rustichini (1995). It is shown that if R&D costs for quality improvements are low, the dynamic competition is structured as a race for being the pioneer firm with payoff equalization in equilibrium,...
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