Technological innovations in the oligopolistic market: saving natural resources

  • M.I. Levin National Research University Higher School of Economics
  • N.V. Shilova Russian Academy of National Economy and Public Administration
  • M.L. Freher Katholic University Leuven Universite Libre de Bruxelles
Keywords: Cournot oligopoly, Innovations, Resources and innovations

Abstract

Innovative policies aimed at reducing the consumption of scarce or rare natural resources should take into account the interests of firms which use these resources in their activities. Firms as maximizers of their own well-being (profits) implement this or that change as soon as this change brings them more profit than the absence of such a change. In this paper we present a model of an infinite Nash competition and show which innovation strategy the firm chooses depending on such parameters as the number of firms on the market, the value of the discount factor, etc. The results of modeling are interesting from a practical point of view, since they predict the main trends of investments in fairly common situations.

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Author Biographies

M.I. Levin , National Research University Higher School of Economics

Dr. Sci. (Econ.), Full Prof. Head of the Department of Microeconomics

N.V. Shilova , Russian Academy of National Economy and Public Administration

Cand. Sci. (Econ.), Assoc. Prof., Assist. Prof.  Department of Microeconomics

M.L. Freher , Katholic University Leuven Universite Libre de Bruxelles

Cand. Sci. (Econ.)

How to Cite
Levin , M., Shilova , N., & Freher , M. (1). Technological innovations in the oligopolistic market: saving natural resources. Proceedings of Voronezh State University. Series: Economics and Management, (4), 147-153. Retrieved from https://journals.vsu.ru/econ/article/view/9130
Section
Mathematical and Tool Methods of Economy