Game Analysis on R&D Choices

Research and development activity is a vital strategy for enterprises in market competition. Researches concerning R&D are mainly focusing on enterprises' cooperative R&D contemporarily, which lacks of systematic study on enterprises' R&D strategies. This article is based on related researches, using Duopoly Market Model to analyze the economic mechanism of enterprises' three different choices on R&D. The choices are, (1) Not conducting R&D and; (2) Conducting R&D and; (3) Making R&D cooperatively.