Sequential Innovation and The Distribution of Profit: From Theory to Data

49 Pages Posted: 10 Apr 2021

See all articles by Danxia Xie

Danxia Xie

Tsinghua University - Institute of Economics

Jinglei Huang

Tsinghua University - Institute of Economics

Date Written: March 1, 2021

Abstract

The distribution of profit is an essential problem for sequential innovation but still lacks related empirical research. By exploring a unique dataset from a game live streaming platform, we are among the first researchers to empirically measure the contribution of upstream and downstream innovators. From the perspective of the overall industry, the optimal distribution scheme is 1:1 for general streamers and game producers and 2:1 for professional streamers and game producers. This paper argues that the optimal distribution scheme between upstream and downstream innovators is based on their contribution share. The detailed distribution scheme also depends on streamer ability, game genres and the game's popularity.

Keywords: sequential innovation; intellectual property; distribution of profit

Suggested Citation

Xie, Danxia and Huang, Jinglei, Sequential Innovation and The Distribution of Profit: From Theory to Data (March 1, 2021). Available at SSRN: https://ssrn.com/abstract=3795179 or http://dx.doi.org/10.2139/ssrn.3795179

Danxia Xie

Tsinghua University - Institute of Economics ( email )

MingZhai Building
Beijing, 100084
China

HOME PAGE: http://danxiaxie.com

Jinglei Huang (Contact Author)

Tsinghua University - Institute of Economics ( email )

MingZhai Building
Beijing, 100084
China

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