innovators are not protected against others appropriating their ideas, incentives for innovation are suboptimally low. Now in … most industries for most potential users, appropriating a foreign innovation is itself an investment decision fraught with … cost and risk. Nonetheless standard theory predicts too little innovation. Arguably the problem is exacerbated by …

innovators are not protected against others appropriating their ideas, incentives for innovation are suboptimally low. Now in … most industries for most potential users, appropriating a foreign innovation is itself an investment decision fraught with … cost and risk. Nonetheless standard theory predicts too little innovation. Arguably the problem is exacerbated by …

innovation. Innovation changes the status quo pay-off, and thereby affects the distribution of the gains from collusion. The … resulting innovation incentive is strictly smaller than in the competitive case …