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Stochasticity Favoring the Effects of the R&D Strategies of the Firms

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Intelligent Engineering Systems and Computational Cybernetics

Summary

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.

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References

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Author information

Authors and Affiliations

  1. Departamento de Matemática Pura, Faculdade de Ci ências da, Universidade do Porto, Rua do Campo Alegre, 687, Porto, 4169-007, Portugal

    Alberto A. Pinto, Bruno M. P. M. Oliveira & Fernanda A. Ferreira

  2. Faculdade de Ci ências da Nutri ção e, Alimenta ção da Universidade do Porto, R. Dr. Roberto Frias, Porto, 4250-465, Portugal

    Bruno M. P. M. Oliveira

  3. Departamento de Matemática, ESEIG — Instituto Politécnico do Porto, Rua D. Sancho I, 981, Vila do Conde, 4480-876, Portugal

    Fernanda A. Ferreira & Flávio Ferreira

Authors
  1. Alberto A. Pinto
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  2. Bruno M. P. M. Oliveira
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  3. Fernanda A. Ferreira
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  4. Flávio Ferreira
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Corresponding author

Correspondence to Alberto A. Pinto .

Editor information

Editors and Affiliations

  1. Department of Electrotechnical Engineering Rua Dr. Antonio Bernardino de Almeida, Institute of Engineering of the Polytechnic Institute of Porto, Porto, 4200-072, Portugal

    J. A. Tenreiro Machado

  2. Department of Engineering Institute for Manufacturing, University of Cambridge, Cambridge, Mill Lane, CB2 2RX, UK

    Béla Pátkai

  3. Department of Intelligent Engineering Systems John von Neumann Faculty of Informatics, Budepest Tech, Bécsi út 96/B, Budapest, 1034, Hungary

    Imre J. Rudas

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© 2009 Springer-Verlag Berlin Heidelberg

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Pinto, A.A., Oliveira, B.M.P.M., Ferreira, F.A., Ferreira, F. (2009). Stochasticity Favoring the Effects of the R&D Strategies of the Firms. In: Machado, J.A.T., Pátkai, B., Rudas, I.J. (eds) Intelligent Engineering Systems and Computational Cybernetics. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-8678-6_36

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  • DOI: https://doi.org/10.1007/978-1-4020-8678-6_36

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-1-4020-8677-9

  • Online ISBN: 978-1-4020-8678-6

  • eBook Packages: Computer ScienceComputer Science (R0)

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