Abstract
The modeling of Schumpeterian competition as a process of innovation, imitation and selection was first presented by Nelson/Winter (1982) in a simulation study and further analyzed in a similar but general analytical formulation by Iwai (1984a, 1984b). Their results concerning the relations between the combination of the different forces of Schumpeterian competition and market structure respectively the distributions of profits are interesting, but restricted to competitive markets. Comparing rules of thumb and satisficing for the R&D decisions the present study analyzes the process of Schumpeterian competition in a heterogeneous oligopoly. Firstly, the authors find for the R&D-concentration relation results contrary to the traditional interpretation of Schumpeter. Secondly, Iwai's (1984a, 1984b) qualitative results hold in this less restrictive modeling.
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The research on this paper was partly financed by the Deutsche Forschungsgemeinschaft. The authors also gratefully acknowledge helpful comments made by two anonymous referees and Horst Hanusch.
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Meyer, B., Vogt, C. & Voßkamp, R. Schumpeterian competition in heterogeneous oligopolies. J Evol Econ 6, 411–423 (1996). https://doi.org/10.1007/BF01202278
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DOI: https://doi.org/10.1007/BF01202278