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Market Leadership with a Sequence of History Dependent Patent Races

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  • Delbono, Flavio

Abstract

This note extends the results of J. Vickers (1986), examining the consequences on the evolution of market structure of having payoffs--and thus profits and incentives--which depend on the technological history of the firms. In a simple duopoly model, the author determines the conditions under which the technological leadership of a firm is strengthened over time (increasing dominance) or is progressively eroded by the rival (catching up). This reformulation of Vickers' model can also accommodate incremental innovations, i.e., technological changes that do not allow the innovator to overtake the rival. Copyright 1989 by Blackwell Publishing Ltd.

Suggested Citation

  • Delbono, Flavio, 1989. "Market Leadership with a Sequence of History Dependent Patent Races," Journal of Industrial Economics, Wiley Blackwell, vol. 38(1), pages 95-101, September.
  • Handle: RePEc:bla:jindec:v:38:y:1989:i:1:p:95-101
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    Cited by:

    1. Drivas, Kyriakos & Giannakas, Konstantinos, 2006. "The Effect Of Cooperatives On Product Innovation In The Agri-Food System," 2006 Annual meeting, July 23-26, Long Beach, CA 21223, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Giannakas, Konstantinos & Fulton, Murray E., 2002. "Innovation Activity In A Mixed Oligopoly: The Role Of Co-Operatives," 2002 Annual meeting, July 28-31, Long Beach, CA 19771, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Giannakas, Konstantinos & Fulton, Murray E., 2003. "Agricultural Cooperatives And Cost-Reducing R&D In The Agri-Food System," 2003 Annual meeting, July 27-30, Montreal, Canada 22193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Onofri, Alejandro & Giannakas, Konstantinos, 2001. "The Strategic Role Of Public R&D In Agriculture," 2001 Annual meeting, August 5-8, Chicago, IL 20699, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Yungho Weng & Chih-Ming Hung, 2020. "Tariff escalation and de-escalation: the role of market structure," The Japanese Economic Review, Springer, vol. 71(2), pages 233-246, April.
    6. Kyriakos Drivas & Konstantinos Giannakas, 2010. "The Effect of Cooperatives on Quality‐Enhancing Innovation," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 295-317, June.

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