This paper develops a tractable endogenous growth model to investigate the interrelationship between exit of firms and economic growth by integrating Schumpeterian growth and stochastic dynamic industry models. The results are in stark contrast with that of standard Schumpeterian growth theory:...

We consider separately strategic entry and asymmetric information in the design of the settlement policy governing patent disputes, with a focus on Shapiro(2003)'s consumer protection rule. We show that, when a potential entrant strategically incurs an entry cost before engaging in a patent...

Mainstream monopoly theory and as related to anti-trust measures evaluates the concentration of an industry to determine if a firm has monopoly power within an industry (Cabral 2000 [2017]). If a firm is dominant within an industry, then it is presumed that consumer surplus is being reduced at...

The conventional wisdom is that the formation of patent pools is welfare enhancing when patents are complementary, since the pool avoids a double-marginalization problem associated with independent licensing. This conventional wisdom relies on the effects that pooling has on downstream prices....

This paper deals with innovative activities of firms, the resulting market success as well as the interdependencies between both. In a first theoretical part, different cases of those interdependencies are investigated by the way of a simple model based on replicator dynamics. It is shown that...

Firm agglomeration is positively correlated with productivity, and it exhibits significant heterogeneity across industries. Yet, the connection between agglomeration and corporate investment remains underexplored. We develop a model of information sharing which predicts that knowledge-intensive...

Two-sided platforms are often coupled with exclusive hardware products that connect two sides of users, the consumers of the hardware product (i.e., buyers) and the application developers (i.e., sellers). The hardware product in the platform business model introduces three important issues that...

We study an infinite-horizon cumulative innovation model, in which patents are characterized bytheir length and the likelihood of being ruled valid in a patent infringement litigation. Strengtheningpatent protection via a greater validity or length has two opposing effects on innovation: 1)...

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 entry. Inventors who sell post-entry use entry to credibly reveal information...