Note discusses and models open-ended innovation in zero-sum games, suggesting implications for competition.
This note discusses zero-sum games with open-ended innovation, whereby each player may introduce new strategies. The innovation process is modelled as a draw of new strategies form a distribution. It is argued that, under generic conditions, this setting can lead to an everlasting innovation arm race, because the introduction of new technologies of one player increases the marginal utility for technological innovation of the opponent.
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Matteo Marsili (2026) studied this question.
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