Consider a patent race between Firm R and Firm S. Suppose that the costs of moving...
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Consider a patent race between Firm R and Firm S. Suppose that the costs of moving 1,2, and 3 steps are $4, $10, and $15, respectively. The patent value is $20. Illustrate in a figure the Trigger Zones I and II and the Safety Zones I and II. Denote firms' research positions (using numbers) at the southwest corner of every Trigger Zone. Consider a patent race between Firm R and Firm S. Suppose that the costs of moving 1,2, and 3 steps are $4, $10, and $15, respectively. The patent value is $20. Illustrate in a figure the Trigger Zones I and II and the Safety Zones I and II. Denote firms' research positions (using numbers) at the southwest corner of every Trigger Zone.
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