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Share to Scare: Technology Sharing in the Absence of Strong Intellectual Property Rights

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  • Jos Jansen

    (Department of Economics and Business Economics, Aarhus University)

Abstract

I study the incentives of Cournot duopolists to share their technologies with their competitor in markets where intellectual property rights are absent and imitation is costless. The trade-off between a signaling effect and an expropriation effect determines the technology-sharing incentives. In equilibrium, there tends to be at most one firm that shares technologies. For similar technology distributions, there exists an equilibrium in which nobody shares. If the technology distributions are skewed towards efficient technologies, then there may exist equilibria in which one firm shares all technologies, only the best technologies, or only intermediate technologies. Further, I consider several extensions.

Suggested Citation

  • Jos Jansen, 2023. "Share to Scare: Technology Sharing in the Absence of Strong Intellectual Property Rights," Economics Working Papers 2023-04, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2023-04
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    More about this item

    Keywords

    Cournot duopoly; strategic disclosure; indivisibility; innovation; trade secret; open source; skewed distribution;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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