This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We apply this theory … innovations. Furthermore, it leads to strategic duplication of the entrant's innovation by the incumbent. These negative … innovation effects of restrictive acquisition policy have to be weighed against the pro-competitive effects of preserving …

This paper provides a theory of strategic innovation project choice by incumbents and start-ups. We show that … prohibiting killer acquisitions strictly reduces the variety of innovation projects. By contrast, we find that prohibiting other … acquisitions only has a weakly negative innovation effect, and we provide conditions under which the effect is zero. Furthermore …

stopping rules combine the best aspects of innovation races and fixed prize tournaments. …