Bargaining Over New Ideas: The Distribution of Rents and the Stability of Innovative Firms
AbstractWe develop a theory of the rent distribution and stability of innovative firms. Our theory is based on a model of bargaining over new ideas. The model accounts for the problem of information leakage, namely, the diffusion of information about new ideas among the agents that participate in the bargaining. Our main results draw a link between the strength of intellectual property rights enforcement and the distribution of rents in firms as well as between the size and organization of firms and their stability. Our theory explains why small firms are advantaged in introducing innovation into the market and why spin-outs tend to emerge from large established firms. (JEL: L1, L2, C7) (c) 2007 by the European Economic Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal Journal of the European Economic Association.
Volume (Year): 5 (2007)
Issue (Month): 6 (December)
Contact details of provider:
Web page: http://www.mitpressjournals.org/jeea
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ponzetto, Giacomo AM, 2012.
"Intellectual Property Rights and Efficient Firm Organization,"
CEPR Discussion Papers
9212, C.E.P.R. Discussion Papers.
- Giacomo A. M. Ponzetto, 2008. "Intellectual property rights and efficient firm organization," Economics Working Papers 1254, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2014.
- Giacomo Ponzetto, 2014. "Intellectual Property Rights and Efficient Firm Organization," Working Papers 668, Barcelona Graduate School of Economics.
- Hülya Eraslan & Antonio Merlo, 2014.
"Some Unpleasant Bargaining Arithmetic?,"
PIER Working Paper Archive
14-003, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Cécile Aubert & Oliver Falck & Stephan Heblich, 2008.
"Subsidizing National Champions: An Evolutionary Perspective,"
CESifo Working Paper Series
2380, CESifo Group Munich.
- Aubert, Cécile & Falck, Oliver & Heblich, Stephan, . "Subsidizing National Champions: An Evolutionary Perspective," Chapters in Economics, University of Munich, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.