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Reinganum (1989) - The Timing Of Innovation Research Development And Diffusion (view source)
Revision as of 16:42, 18 November 2010
, 16:42, 18 November 2010→Symmetric Models
There are some basic assumptions that underlie all of the symmetric models:
*Firms are '''Firms are homogeneous''', and so we look for symmetric solutions
*'''Innovation is costly''', with costs (eventually at least) decreasing and convex (i.e. there are eventual diseconomies of scale)
*'''The first to invent wins''' the rights to a rent (i.e. gets a patent) and everyone else gets nothing (i.e. no spillovers)
