Because the patent system is nowadays under criticisms, it is legitimate to question whether patents provide the best incentive mechanism for innovation. Wouldn?t it be preferable to base incentives on a reward system? This is the question addressed in this article, first in a general...

We analyze whether and how the fact that products are not sold on open or public platforms but on competing for-profit platforms affects sellers’ investment incentives. Investments in cost reduction, quality, or marketing measures are here the joint and coordinated efforts by sellers. We show...