Dynamic duopoly competition maximizes industry value with optimal imitation costs.
The article explores how companies decide when to innovate or imitate in a competitive market. They found that it's best for both firms to enter the market at a moderate pace, neither rushing nor delaying. The study shows that copying each other can be beneficial, but only if done at a cost. Depending on factors like consumer demand and competition, it may be better for one company to wait and see or to act quickly. Additionally, companies may use different strategies like patents or secrecy to protect their ideas, depending on how easy it is for others to copy them.