Competition In Product Design: An Experiment Exploring Innovation Behavior
AbstractWe experimentally investigate competition for innovations in a patent race scenario. Pairs of subjects compete as seller firms on a duopoly market, investing in risky search. Successful innovations resulting thereof are rewarded via temporary monopoly rents. Classifying investor types reveals that most of them invest according to objective investment criteria, such as probability of search success and cash flow, as well as to non-pecuniary criteria, such as intensity of competition and relative performance. For a minority, however, no such correlation is ascertained. Copyright � 2009 The Authors. Journal compilation � 2009 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Metroeconomica.
Volume (Year): 60 (2009)
Issue (Month): 4 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386
Other versions of this item:
- Uwe Cantner & Werner Güth & Andreas Nicklisch & Torsten Weiland, 2007. "Competition in product design: An experiment exploring innovation behavior," Jena Economic Research Papers 2007-014, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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