Abstract: This paper presents an experimental study of dynamic indefinite horizon H&D races with uncertainty and multiple prizes. The theoretical preducitions are highly sensitive: small parameter changes determine whethe technological competition is sustained over time or converges nto a market structure with an entrenched leadership and lower aggregate R&D research The subjects' strategies are far less sensitive. In tree out of four treatments (with the exception being a contrl treatment), the R&D races tend to converge to entrenched leadership. Investment is highest wen rivals are close, and there is evidence of average over-investment.
