We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the sales price. Such preemptive acquisitions by incumbents are shown to stimulate...

The past few decades have seen a significant increase in the acquisitions of startups by incumbents. As these acquisitions can enhance the incumbents' market power, they have raised concerns regarding their potential anti-competitive effects. By incorporating a dynamic perspective, this study...

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the sales price. Such preemptive acquisitions by incumbents are shown to stimulate...

When and how do entrepreneurs sell their inventions? To address this issue, we develop an endogenous entry-sale asymmetric information oligopoly model. We show that lowquality inventions are sold directly or used for own entry. Inventors who sell post-entry use entry to credibly reveal...

We present a model of startup acquisitions, which may give rise to inefficient "talent hoarding." We develop a model with two competing firms that can acquire and integrate (or "acquihire") a startup operating in an orthogonal market. Such an acquihire improves the competitiveness of the...

This study examines the relationship between the composition of new venture founder teams and acquisition likelihood as a coveted exit route for entrepreneurs and investors. We find that gender diversity and the average education level of team members are positively related to acquisition...

This paper analyzes the decision of growing startups to either scale up on their own or to sell to an established company. The model recognizes the intergenerational linkages that acquirers were startups themselves in the past who chose not to get acquired. The acquisition price depends on the...

The market for acquisitions has been a blind spot in exploration-exploitation research in the new venture context. The introduction of the acquisition exit outcome as a performance dimension for new ventures, especially among high-tech ventures, shifts the traditional temporal logic of...