This article examines a dynamic duopoly case, where the demand of a new product follows a diffusion model influenced by innovation and price differential effects, and the potential market size expands as the technology level embodied in the product advances.
KIM, B., EL OUARDIGHI, F. et PARK, S. (2012). Optimal Dynamics of Technology and Price in a Duopoly Market. Applied Economics Letters, 19(11), pp. 1017-1022.