The Role of an Imitating Firm in a Dynamic Context
We analyze the effects of an imitating firm on the behavior of the innovatingfirm. The framework of analysis used is a dynamic duopoly model of vertical productdifferentiation, where both the innovator and the imitator compete simultaneously inprice and quality. We obtain that when the market is sma...
Main Author: | |
---|---|
Format: | Article |
Language: | English |
Published: |
Universidad de Antioquia
2007-12-01
|
Series: | Lecturas de Economía |
Subjects: | |
Online Access: | http://www.scielo.org.co/scielo.php?script=sci_pdf&pid=S0120-25962007000200009&lng=en&nrm=iso&tlng=en |
id |
doaj-f31c19c784f54295993c10409ee0564e |
---|---|
record_format |
Article |
spelling |
doaj-f31c19c784f54295993c10409ee0564e2020-11-25T03:43:56ZengUniversidad de AntioquiaLecturas de Economía0120-25962007-12-016767225240The Role of an Imitating Firm in a Dynamic ContextFrancisco Martínez –SánchezWe analyze the effects of an imitating firm on the behavior of the innovatingfirm. The framework of analysis used is a dynamic duopoly model of vertical productdifferentiation, where both the innovator and the imitator compete simultaneously inprice and quality. We obtain that when the market is small, the presence of an imitatorencourages the innovator to increase its innovating process, so the entry of the imitatorshould not be obstructed; and, when the market is large, the imitator reduces the innovator’sincentives to invest its economic resources in R&D and to provide a higher quality, so theentry of the imitator should not be encouraged.http://www.scielo.org.co/scielo.php?script=sci_pdf&pid=S0120-25962007000200009&lng=en&nrm=iso&tlng=enLeaderImitatorQualityDifferentiation of ProductConsumer. |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Francisco Martínez –Sánchez |
spellingShingle |
Francisco Martínez –Sánchez The Role of an Imitating Firm in a Dynamic Context Lecturas de Economía Leader Imitator Quality Differentiation of Product Consumer. |
author_facet |
Francisco Martínez –Sánchez |
author_sort |
Francisco Martínez –Sánchez |
title |
The Role of an Imitating Firm in a Dynamic Context |
title_short |
The Role of an Imitating Firm in a Dynamic Context |
title_full |
The Role of an Imitating Firm in a Dynamic Context |
title_fullStr |
The Role of an Imitating Firm in a Dynamic Context |
title_full_unstemmed |
The Role of an Imitating Firm in a Dynamic Context |
title_sort |
role of an imitating firm in a dynamic context |
publisher |
Universidad de Antioquia |
series |
Lecturas de Economía |
issn |
0120-2596 |
publishDate |
2007-12-01 |
description |
We analyze the effects of an imitating firm on the behavior of the innovatingfirm. The framework of analysis used is a dynamic duopoly model of vertical productdifferentiation, where both the innovator and the imitator compete simultaneously inprice and quality. We obtain that when the market is small, the presence of an imitatorencourages the innovator to increase its innovating process, so the entry of the imitatorshould not be obstructed; and, when the market is large, the imitator reduces the innovator’sincentives to invest its economic resources in R&D and to provide a higher quality, so theentry of the imitator should not be encouraged. |
topic |
Leader Imitator Quality Differentiation of Product Consumer. |
url |
http://www.scielo.org.co/scielo.php?script=sci_pdf&pid=S0120-25962007000200009&lng=en&nrm=iso&tlng=en |
work_keys_str_mv |
AT franciscomartinezsanchez theroleofanimitatingfirminadynamiccontext AT franciscomartinezsanchez roleofanimitatingfirminadynamiccontext |
_version_ |
1724517224182448128 |