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We show that the common wisdom suggesting higher investment in innovation under a stronger patent protection may not be … true if the innovator can license its technology ex‐post innovation. If the initial cost of production is high and the … slope of the marginal cost of undertaking innovation is moderate, investment in innovation is maximised at a patent …
Persistent link: https://www.econbiz.de/10014136803
We consider the impact of horizontal mergers in the presence of free entry and exit. In contrast to much of the previous literature on horizontal mergers, our model yields predictions that seem intuitively reasonable: with only moderate cost synergies mergers of a small number of industry...
Persistent link: https://www.econbiz.de/10014063457
We show that international outsourcing may reduce welfare of the outsourcing country by deterring market-entry, thus showing a new effect which is different from the employment and the quality effects creating negative impacts of outsourcing. Entry deterrence under outsourcing reduces domestic...
Persistent link: https://www.econbiz.de/10013157243
Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff spillovers. The threat of competition pushes firms to enter earlier to preempt their rivals while the possibility of learning make...
Persistent link: https://www.econbiz.de/10013230912
innovation. We also show that a patent pool makes the input suppliers better off, but it may not make all final goods producers …
Persistent link: https://www.econbiz.de/10010819885
We show the effects of the bargaining power of labour unions on product innovation under decentralised and centralised … union bargaining power increases innovation if bargaining is decentralised, the market expansion effect is weak and the cost … of innovation is moderate but low. Otherwise, a higher union bargaining power reduces innovation. Hence, whether a higher …
Persistent link: https://www.econbiz.de/10010413720
We show the effects of the bargaining power of labour unions on product innovation under decentralised and centralised … union bargaining power increases innovation if bargaining is decentralised, the market expansion effect is weak and the cost … of innovation is moderate but low. Otherwise, a higher union bargaining power reduces innovation. Hence, whether a higher …
Persistent link: https://www.econbiz.de/10013045339
This paper provides a dynamic game of market entry to illustrate entry dynamics in an uncertain market environment. Our model features both private learning about the market condition and market competition, which give rise to the first-mover and secondmover advantages in a unified framework. We...
Persistent link: https://www.econbiz.de/10011921916
Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff spillovers. The threat of competition pushes firms to enter earlier to preempt their rivals while the possibility of learning make...
Persistent link: https://www.econbiz.de/10012503468
This paper provides a dynamic game of market entry to illustrate entry dynamics in an uncertain market environment. Our model features both private learning about the market condition and market competition, which give rise to the first-mover and second-mover advantages in a unified framework....
Persistent link: https://www.econbiz.de/10012908804