quarta-feira, dezembro 21, 2005

The theory helps us to answer the following questions:

δ2 [c - c]2
δ2 [c - c]2
8 δ2 [c - c]2
I at t = 1 first leader cB = E(c) .B = 1
16 δ2 [c - c]2
Firm A Invests Learns skill w.p. λ; skill cA = c .A = 1
9 [2 - δ]2 [c - c]2
k at t = 0 high w.p. δ (Cournot) cB = E(c) .B = 1
9 [2δ - 1]2 [c - c]2
Learns skill w.p. λ; skill cA = c .A = 0
low w.p. 1 - δ (Cournot) cB = E(c) .B = 14
δ2 [c - c]2
Doesn’t learn skill w.p. 1 - λ cA = E(c) .A = 1
9 δ2 [c - c]2
(Cournot) cB 9 δ2 [c - c]2
(Leader) cB = E(c) .B = 1
Learns skill w.p. λ; skill cA = c .A = 1
Doesn’t learn skill w.p. 1 - λ cA = E(c) .A = 1
I at t = 0 (Leader) cB = E(c) .B = 1