Game theoretical approaches concerning R&D

Abstract

We consider two games concerning R&D. One is a deterministic continuous-time nonzero-sum game treating research and development separately. We obtain the Nash equilibrium point and give the explicit solutions of two special cases. Moreover, we consider an extension model. Another is a probabilistic sequential game in which both basic technology level and production technique level are random variables. We obtain its Nash equilibrium point iteratively and give the explicit solution of a special case.

Keywords:

• Research and development
• Nonzero-sum game
• Sequential game
• Nash equilibrium point