Stabsseminar på fredag

Fredag 12. desember holder Institutt for foretaksøkonomi stabsseminar. Seminaret er ved Kristian R. Miltersen fra NHH, og temaet er R&D Investments with Competitive Interactions.

11.12.2003 - Stig Nøra

Tid: Fredag 12. desember klokken 12.15-13.45

Sted: Karl Borchs Auditorium

Abstract

In this article we develop a model to analyze patent-protected R&D
investment projects when there is (imperfect) competition in the
development and marketing of the resulting product. The competitive
interactions that occur substantially complicate the solution of the
problem since the decision maker has to take into account not only the
factors that affect her/his own decisions, but also the factors that
affect the decisions of the other investors. The real options framework
utilized to deal with investments under uncertainty is extended to
incorporate the game theoretic concepts required to deal with these
interactions. Implementation of the model shows that competition in R&D
increases the probability of a successful development unless the R&D
investment projects are very marginal. In this case a single
monopolistic developer will give the highest probability of success. Competition in
R&D also increases production, reduces prices, and shortens the time of
developing the product. These benefits to society are countered by
increased total investment costs in R&D and lower aggregate value of the
R&D investment projects.

Paper er tilgjengelig på:

http://www.nhh.no/for/seminars/2003-fall/121203.pdf

Kontaktperson: Kristian R. Miltersen (59979)