This paper presents an experimental study of dynamic indefinite horizon R and D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained, or converges into a market structure...

We study an economic setting where, due to payoff externalities such as peer effects or network externalities, the enthusiasm of the few entraps others to join an activity or club. Our experimental results largely support the model and its theoretical prediction of entrapment. Subjects choose to...

This paper presents an experimental study of dynamic indefinite horizon R&D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained, or converges into a market structure with an...