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Innovation and Imitation in a Duopoly

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  • Jean-Pierre Benoit

Abstract

In a duopoly where one firm has the idea for a non-patentable innovation, the expected profits from the innovation will not be a monotonic function of the cost of innovating. Furthermore, a costly innovation may be undertaken, where an inexpensive one would not have been, all other things being equal.

Suggested Citation

  • Jean-Pierre Benoit, 1985. "Innovation and Imitation in a Duopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(1), pages 99-106.
    • Handle: RePEc:oup:restud:v:52:y:1985:i:1:p:99-106.
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