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Smit and Trigeorgis (1997, 2003) have had the biggest contribution to this kind of R&D investment model. Huisman and Kort (1998, 1999) have developed the standard option game model under symmetric duopoly. They extend the thought of Fudenberg and Tirole (1985) on solving the equilibrium of the model and analytical framework of Stenbacka and Tombak (1994) on modeling the characteristics of technology...
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