Innovation by Leaders Without Winner-Take-All

16 Pages Posted: 4 Mar 2008

See all articles by Raymond De Bondt

Raymond De Bondt

Catholic University of Leuven (KUL)

Jan Vandekerckhove

KU Leuven - Faculty of Business and Economics (FEB)

Date Written: June 2007

Abstract

In innovative races with winner takes all, leading firms invest less than each follower, given exogenous entry (Reinganum, 1985). But with endogenous entry this result is reversed (Etro, 2004). It is argued here that sharing of rewards between the players may alter these predictions.

Keywords: Firms, Free entry, Innovation, IT, Market sharing, Patent race, Prediction, Predictions

JEL Classification: O31,L13

Suggested Citation

De Bondt, Raymond and Vandekerckhove, Jan, Innovation by Leaders Without Winner-Take-All (June 2007). Available at SSRN: https://ssrn.com/abstract=1101443 or http://dx.doi.org/10.2139/ssrn.1101443

Raymond De Bondt (Contact Author)

Catholic University of Leuven (KUL) ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Jan Vandekerckhove

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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