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Experimental Research on Asymmetric R&D Investment of R&D/Product Problem
College of Business & Administration, Zhejiang University of Technology, Hangzhou, China
- 1 College of Business & Administration, Zhejiang University of Technology, Hangzhou, China
Theoretical Economics Letters·Volume 02 (2012)·Pages 83–86·Published 23 February 2012·DOI10.4236/tel.2012.21016
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Abstract
In this paper, an experiment is designed to verify the model findings of asymmetric R&D investment in open environment. 25 MBA students voluntarily participated in the experiment. They were divided into five groups representing different corporate decision-makers with different technical level to participate in repeated R&D/production game. The results show that low technology players will choose to take free ride of high technology competitors’ R&D investment and spare much expenditure at the stage of sequential game, while in a synchronize game a R&D race is the rational choice to both sides. The results fit well with model research, and they can also confirm that the equilibrium of model can be found by people in reality.
KeywordsExperimentAsymmetricR&D/Product Problem
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