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Fig 1.

Overall framework for cost-benefit model.

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Fig 1 Expand

Fig 2.

Life cycle of models for firms A and B.

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Fig 2 Expand

Table 1.

Specifications of the 4th, 4th-derivative, and 5th generation iPhone models.

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Table 1 Expand

Fig 3.

Scenarios according to the Innovativeness Degree of each model.

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Fig 3 Expand

Fig 4.

Quality failure probability when t = 0 (see Eq 8).

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Fig 4 Expand

Fig 5.

Net Profit of firm A and B.

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Fig 5 Expand

Fig 6.

Net profit changes with different β1, which is related to the innovation coefficient p.

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Fig 6 Expand