Duopoly Decisions in Uncertain Markets: How Firms Strategize for Success
The article explores how companies make decisions about replacing technology when facing uncertain demand and competition. The researchers used a model to simulate how firms interact in a market with unpredictable customer demand. They found the best times for companies to replace their technology, whether they are leading the market, following others, or replacing at the same time. The study identified two types of equilibrium in the game and the conditions for each to happen.