nep-ind New Economics Papers
on Industrial Organization
Issue of 2013‒10‒25
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Open Innovation in a dynamic cournot duopoly By Hasnas, Irina; Lambertini, Luca; Palestini, Arsen
  2. Apple’s Changing Business Model: What Should the World’s Richest Company Do with All Those Profits? By William Lazonick; Mariana Mazzucato; Öner Tulum
  3. They played the merger game: A retrospective analysis in the UK videogames market By Aguzzoni, Luca; Argentesi, Elena; Buccirossi, Paolo; Ciari, Lorenzo; Duso, Tomaso; Tognoni, Massimo; Vitale, Cristiana

  1. By: Hasnas, Irina; Lambertini, Luca; Palestini, Arsen
    Abstract: In recent years Open Innovation (OI) processes have been receiving growing attention from the empirical and theoretical economic literature, where a debate is taking place on the aspects of complementarity or substitutability between internal R&D and OI spillover. By means of a differential game approach, we analyze the case of substitutability in an OI setup in a Cournot duopoly where knowledge spillovers are endogenously determined via the R&D process. The game produces multiple steady states, allowing for an asymmetric solution where a firm may trade off the R&D investment against information absorption from the rival. The technical analysis and the numerical simulations point out that the firm which commits to a higher level of OI absorption produces a smaller output and enjoys higher profits than its rival. --
    Keywords: R&D,spillovers,dynamic games
    JEL: C73 L13 O31
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:111&r=ind
  2. By: William Lazonick (University of Massachusetts, Lowell, USA); Mariana Mazzucato (SPRU, University of Sussex, UK); Öner Tulum (University of Massachusetts, Lowell, USA)
    Date: 2013–10–16
    URL: http://d.repec.org/n?u=RePEc:sru:ssewps:2013-07&r=ind
  3. By: Aguzzoni, Luca; Argentesi, Elena; Buccirossi, Paolo; Ciari, Lorenzo; Duso, Tomaso; Tognoni, Massimo; Vitale, Cristiana
    Abstract: We study the effect of a merger in a dynamic high-technology industry - the videogame market - which is characterized by frequent introduction of new products. To assess the impact of the merger between two large specialist retailers in the UK, we perform a difference-in-differences analysis comparing the price evolution of the merging parties to that of their 7 major competitors on an original sample of 196 videogames belonging to six different consoles. The results of our econometric analyses suggest that there has been a reduction in the general level of prices of both new and pre-owned games after the merger. This decline has been more marked for the merging parties, which suggests that the merger between Game and Gamestation did not lead to a substantial lessening of competition; rather it is consistent with the existence of efficiency gains. --
    Keywords: R&D,Ex-post Evaluation,Videogames market,Retail sector
    JEL: K21 L24 L44 D22 O32
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:113&r=ind

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