Strategic R and D success announcements

Bag, Parimal Kanti and Dasgupta, Sudipto (1995) Strategic R and D success announcements. Economics Letters, 47 (1). pp. 17-26. ISSN 0165-1765

Abstract

We consider a two-stage R&D racing game in which there are two types of uncertainty: uncertainty about firm type and basic uncertainty about the feasibility of the project itself. We show that R&D success in the initial stage will be announced if it occurs early enough in the race; otherwise it will be suppressed.