Exploring Asymmetry in R&D/Product Games: An Experimental Approach

Abstract

This experimental research investigates asymmetry in the context of R&D/product games, where firms engage in strategic interactions involving both research and development (R&D) and product market competition. Through a series of laboratory experiments, the study aims to analyze how asymmetric characteristics, such as differences in firm size, technological capabilities, or market power, influence the strategic decisions and outcomes in R&D/product games. The research design incorporates various experimental treatments to manipulate asymmetry levels among participants, allowing for a systematic exploration of the effects of asymmetry on R&D investment, product pricing, market competition, and overall performance. By employing game theory frameworks and econometric analysis techniques, the study seeks to identify patterns and dynamics underlying asymmetric interactions in R&D/product games and to provide insights into strategic decision-making in real-world competitive environments. The findings contribute to advancing our understanding of asymmetric competition dynamics and offer implications for firms' R&D and product market strategies in environments characterized by varying levels of asymmetry.