This study analyses the incentives for process innovations under different conditions determined by the competition …

increases, monetary incentives to engage in cost reduction tend to decrease. We test the hypothesis that there are non … exogenously keeping the monetary incentives to spend effort constant. The first experiment shows that subjects spend significantly …

diminish as a firm increases in size. The findings broadly support the notion that differences in the incentives and abilities …

In his seminal “prospect theory” of patents, Edmund Kitch contends that patents should be relatively broad in order to … relevant technology class, and the breadth of its patent determines how competitive this market can become. Prospect theory … market structure is in fact closer to perfect competition than monopoly. Although this theory has not previously been related …

How does a firm’s market power in existing products affect its incentives to innovate? We explore this fundamental … firms having reduced incentives to innovate when they are able to maintain their market power, highlighting a specific …