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We present a model where an incumbent firm has a proprietary product whose technology consists of at least two components, one of which is patented while the other is kept secret. At the patent expiration date, an entrant firm will enter the market on the same footing as the incumbent if it is...
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We present a simple model where patents are inferior to secrecy, meaning that when private returns from innovation under the two regimes are the same, society is better off if innovator chooses not to patent. In our model trade secret licensing is envisaged and inferiority of patents depends on...
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