Stochasticity favoring the effects of the R&D strategies of the firms

We present stochastic dynamics on the production costs of Cournot competitions, based on perfect Nash equilibria of nonlinear R&D investment strategies to reduce the production costs of the firms at every period of the game. We analyse the effects that the R&D investment strategies can have in the profits of the firms along the time. We observe that, in certain cases, the uncertainty can improve the effects of the R&D strategies in the profits of the firms due to the non-linearity of the profit functions and also of the R&D parameters.

Cournot duopoly with competition in the R&D expenditures

We present a new R&D investment in a Cournot Duopoly model and we analyze the different possible types of Nash R&D investments. We observe that the new production costs region can be decomposed in three economical regions, depending on the Nash R&D investment, showing the relevance of the use of patents in new technologies.