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comparable firms. We develop a theory of buyouts in oligopolistic markets that explains these facts. Private equity firms are …
Persistent link: https://www.econbiz.de/10003914407
We construct a model where incumbents can either acquire basic innovations from entrepreneurs, or wait and acquire developed innovations from entrepreneurial firms supported by venture capitalists. We show that venture-backed entrepreneurial firms have an incentive to overinvest in development...
Persistent link: https://www.econbiz.de/10003809049
-sale asymmetric information oligopoly model. We show that lowquality inventions are sold directly or used for own entry. Inventors who …
Persistent link: https://www.econbiz.de/10011742388