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Why do firms outsource research and development (R&D) for some products while conducting R&D in-house for similar ones? An innovating firm risks cannibalizing its existing products. The more profitable these products, the more the firm wants to limit cannibalization. We apply this logic to the...
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Recommended readings (Machine generated): Michael Spence (1973), 'Job Market Signaling', 87 (3), Quarterly Journal of Economics, August, 355-74 -- Boyan Jovanovic (1979), 'Job Matching and the Theory of Turnover', Journal of Political Economy, 87 (5), Part 1, October, 972-90 -- Eugene F. Fama...
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