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sufficiently high, license without entry strategy is optimum; if the low quality good’s quality is low, both of entry without … license strategy and license without entry strategy are optimum; when cost functions are quadratic, if the high quality good …’s quality is high, license without entry strategy is optimum; if the high quality good’s quality is low, entry with license …
Persistent link: https://www.econbiz.de/10011573193
In a context of product innovation, we study two-part tariff licensing between a patentee and a potential rival which compete in a differentiated product market characterized by network externalities. The latter are shown to crucially affect the relative profitability of Cournot vs. Bertrand...
Persistent link: https://www.econbiz.de/10012306713
We analyze a model of cost-reducing R&D and compatibility decisions by two platforms. After an exogenous improvement in the efficiency of R&D, each platform has a heightened incentive to make its software incompatible with the rival's hardware device to avoid being dominated in the hardware...
Persistent link: https://www.econbiz.de/10012968151
The General Data Protection Regulation (GDPR) was enacted in the European Union in April 2016 and went into effect in May 2018. We study its impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects after its 2018 rollout on European ventures,...
Persistent link: https://www.econbiz.de/10012850977
This paper discusses the design, implementation and use of standards from the perspective of transaction costs economics. A proper design and implementation of standards may lead to a considerable reduction of transaction costs, which enhances trade and, consequently, economic welfare. A major...
Persistent link: https://www.econbiz.de/10011373830
of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by … acquisition relative to entry. A policy enforcing strict compatibility leads to more entry, but can be counterproductive by …
Persistent link: https://www.econbiz.de/10008919575
In industries with network effects, incumbents' installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … not necessarily restrict the innovation incentives and that network effects promote acquisitions over entry. …
Persistent link: https://www.econbiz.de/10011117298
of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by … acquisition relative to entry. A policy enforcing strict compatibility leads to more entry, but can be counterproductive by …
Persistent link: https://www.econbiz.de/10010320239
This paper studies the impact of income inequality on the level of innovative activities in a model where innovations result in quality improvements. The market for quality goods is characterized by a natural oligopoly with three types of consumers - rich, middle class and poor. In general, we...
Persistent link: https://www.econbiz.de/10010291067
This paper studies the impact of income inequality on the level of innovative activities in a model where innovations result in quality improvements. The market for quality goods is characterized by a natural oligopoly with three types of consumers - rich, middle class and poor. In general, we...
Persistent link: https://www.econbiz.de/10005704202