Barrachina, Alex; Tauman, Yair; Salvador, Amparo Urbano - Estructura de Recerca Interdisciplinar Comportament … - 2014
We analyze the effect of industrial espionage on limit-pricing models. We consider an incumbent monopolist engaged in R&D trying to reduce his cost of production and deter a potential entrant from entering the market. The R&D project may be successful or not and its outcome is a private...