Under the framework of a two-stage innovation process in which the first-stage innovation is commercialized by multiple firms at the second stage, this study proposes an optimal patent system for efficient commercialization by a lower cost firm when the R&D costs are private information. Under...

<italic>This paper examines the factors that affect market dominance in a standards competition by comparing the VHS--Beta war in the 1980s with that between Blu-ray and HD-DVD in the 2000s. We first look at the changing home video market in terms of technological development. Then we move on to discuss...</italic>

This study analyzes the factors that explain the variations of daily airfares across fare histories, or dynamic price dispersion. Empirical analyses show that dynamic price dispersion is significantly influenced by demand characteristics variables such as population, income and the share of...

In a framework of hardware–software paradigm with network externality, this study analyses the resource allocation problem of a hardware firm, which is developing a new hardware system. By formulating a dynamic model of quality choice, this study shows that firm's long-run profit is...