- A-Z
- Jena Economics Rese...
- Volume 1
- Competition in prod...
Competition in product design: An experiment exploring innovation behavior
- Author
- published
- Mon May 7 2007
- Number of discussion paper
-
2007-014
- keyword(s)
-
imitation
innovation
innovation
patent race
- abstract
-
We experimentally investigate competition in innovation in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, engaging in risky search investments. Successful innovation is rewarded through temporary monopoly rents. Throughout the interaction, subjects receive feedback on own and other’s search success and profit margin. Partitioning subjects into subgroups of investor types reveals that the majority of subjects condition investments on the degree of competition as measured by sales shares, while for others no correlation is ascertained. Heterogeneity in individual risk attitudes and differing experiences with related search tasks may explain this finding.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- D81 - Criteria for Decision-Making under Risk and Uncertainty ; L11 - Production, Pricing, and Market Structure; Size Distribution of Firms ; O31 - Innovation and Invention: Processes and Incentives
- URN
- urn:nbn:de:urmel-8fc661af-02ff-441f-9fa5-ea579de9b40f5-00024246-10