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Loury (1979) - Market Structure And Innovation (view source)
Revision as of 16:15, 17 November 2010
, 16:15, 17 November 2010→The Model
This is directly comparable to a contest success function:
:<math>pr(\tau(x_i) \le \min(\hat{\tau_i},t)) = \underbrace{ \frac{h(x_i)}{\sum_{i=1}^{n} h(x_i)} }_{\mbox{Firm i's relative effort}} \cdot \underbrace{ \left ( 1-e^{-\left(\sum_{i=1}^{n} h(x_i)\right)t}\right ) }_{\mbox{Prob of innov at t}}\;</math>
===Solution concept===
