What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in the form of entry costs in a lobbying model taking into account the conflict of interest between entrepreneurs and incumbents. It is shown that international market integration leads to more...

We investigate how temporary ownership by private equity firms affects industry structure, competition and welfare. Temporary ownership leads to strong investment incentives because equilibrium resale prices are determined partly by buyers' incentives to block rivals from obtaining assets. These...

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 option of selling to an incumbent increases innovation...

Energifrågorna står högt upp på de politiska agendorna världen över. Förnybar energi, energieffektivisering och smarta elnät är politiska ledord i de strategier som dras upp för framtidens elmarknader. Smarta elnät är ”jokern i leken” som sägs möjliggöra för både mer...

Many countries around the world respond to global warming and its consequences with various policy instruments. In the economic literature, policy instruments have typically been analysed with respect to efficiency, but little effort has been expended to understand public preferences for these...

type="main" xml:id="twec12132-abs-0001" <title type="main">Abstract</title> <p>During the last decades, we have witnessed a large number of entrepreneurial firms that reach the world market at a fast pace (‘born global firms’). Our analysis suggests that the ongoing globalisation process indeed implies that born to be...</p>

We analyze incentives to develop entrepreneurial ideas for venture capitalists (VCs) and incumbent firms. If VCs are sufficiently better at judging an idea's value and if it is sufficiently more costly to patent low than high value ideas, VCs acquire valuable ideas, develop them beyond the level...

This paper concerns optimal taxation and public goods in an economic federation with decentralized leadership, where one lower level government is first mover also in the horizontal dimension. Under plausible assumptions, horizontal leadership reinforces the incentives created by decentralized...

This paper examines the interaction between intellectual property protection and competition policy on the choice of entrepreneurs with respect to commercialization as well as the rate of innovation. We find that stronger intellectual property protection makes it more likely that entrepreneurs...