Patent Races, Product Standards, and International Competition
AbstractThe authors examine anticipatory product standards intended to improve the strategic position of firms in an international patent race where firms do R&D to develop products that are close substitutes. The effects of a standard depend on the way the standard is specified, which firm develops which product, and the order of discovery. Simple standards can be time inconsistent because of consumer losses that occur when products ruled out by the standard are discovered first. A state-contingent standard is shown to be time consistent when compulsory licensing by the foreign firm is introduced. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Bibliographic InfoArticle provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 37 (1996)
Issue (Month): 1 (February)
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Web page: http://www.econ.upenn.edu/ier
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Other versions of this item:
- Richard A. Jensen & Marie Thursby, 1991. "Patent Races, Product Standards, and International Competition," NBER Working Papers 3870, National Bureau of Economic Research, Inc.
- Jensen, R. & Thursby, M., 1994. "Patent Races, Product Standards, and International Competition," Papers 94-015, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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