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on Technology and Industrial Dynamics |
| By: | Macdonald, Ryan |
| Abstract: | This paper examines the survival characteristics of firms, using microdata from the Longitudinal Employment Analysis Program (LEAP) of Statistics Canada. Entry rates and survival functions for the 2002 cohort are analyzed. The business sector is disaggregated along industry and size dimensions. |
| Keywords: | Business performance and ownership, Entry, exit, mergers and growth |
| Date: | 2012–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp1e:2012028e&r=tid |
| By: | Ponzetto, Giacomo AM |
| Abstract: | This paper shows that intellectual property rights yield static efficiency gains, irrespective of their dynamic role in fostering innovation. I develop a property-rights model of firm organization with two dimensions of non-contractible investment: how much cost-minimizing effort to exert, and whether to direct it towards partnership or defection. In equilibrium, the first best can be attained if and only if property rights are as strong for intangible as for tangible assets. When IP rights are weaker, the structure of the firm is distorted and efficiency declines. An entrepreneur must either integrate her suppliers, which induces a fall in their investment; or else risk their defection, which entails a waste of her human capital. My model predicts greater prevalence of vertical integration in response to weaker IP rights. It also predicts a switch from integration to outsourcing over the product cycle. Both empirical predictions are consistent with evidence on the organization of multinational companies. As a normative implication, I find that IP rights should be strong but narrowly defined, to protect one business opportunity without holding up its potential spin-offs. |
| Keywords: | Hold-up problem; Intellectual property; Licensing; Organization; Outsourcing; Product cycle; Property rights; Spin-off; Vertical integration |
| JEL: | D23 D86 K11 L22 L24 O34 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9212&r=tid |
| By: | Hüschelrath, Kai; Müller, Kathrin |
| Abstract: | We investigate the competitive effects of the merger between Delta Air Lines and Northwest Airlines (2009) in the domestic U.S. airline industry. Applying fixed effects regression models we find that the transaction led to short term price increases of about 11 percent on overlapping routes and about 10 percent on routes which experienced a merger-induced switch of the operating carrier. Over a longer period, however, our analysis reveals that both merger efficiencies and post-merger entry by competitors initiated a downward trend in prices leaving consumers with a small net price increase of about 3 percent on the affected routes. -- |
| Keywords: | airline industry,merger,market power,efficiencies,entry-inducing effects |
| JEL: | L40 L93 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12070&r=tid |