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This paper studies the introduction of new products (increase in product variety) in the automobile industry. The focus is on the two sources of market power that may allow the firms to get higher profits (and, thus, recoup investments): new products and brand-name reputation. The effects of new...
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We analyze firms' investment in product innovation when there are heterogeneous consumer switching costs in markets … increase investment in product innovation to remain competitive, while an industry leader's best strategy is to increase R … product standardization) unambiguously increases consumer surplus and overall welfare but may affect product innovation …
Persistent link: https://www.econbiz.de/10012863454
We investigate the incentives of a high-quality firm to transfer for free its proprietary product innovation technology …
Persistent link: https://www.econbiz.de/10012896828
appropriability regimes are not extremely tight, patents are permeable, so firms need alternative value appropriation tools. To … clarify the efficacy of patents in such appropriability regimes, this article presents an analysis of synergies across value … synergistic, with advertising spends increasing value appropriation ability of patents. Finally, product contextual factors, i …
Persistent link: https://www.econbiz.de/10013210510
We characterize the effect of overlapping ownership (OO) on investments in product innovation. We analyze two opposing … technology affects the threshold required for OO to possibly stimulate investments in innovation …
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