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'Hybrid' competition, innovation outcomes and regulation: A duopoly model
[Concurrence 'hybride', innovation et régulation : Un modèle de duopole]

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  • Thomas Le Texier

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Ludovic Ragni

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, COMUE UCA - COMUE Université Côte d'Azur (2015-2019))

Abstract

This paper presents a duopoly model in which a commercial organization and a community compete by providing digital products while being able to share their innovation outputs to develop their own activities. The commercial organization always benefits from either a ‘closed' or an ‘open' institutional regime shift. Our numerical analysis evidences that the ‘closed' shift provides the best levels of innovation and welfare whereas it is not found to be profit-improving when product differentiation is small. This result partially qualifies the conventional idea according to which public policies may be designed to defend commercial interests rather than public ones.

Suggested Citation

  • Thomas Le Texier & Ludovic Ragni, 2019. "'Hybrid' competition, innovation outcomes and regulation: A duopoly model [Concurrence 'hybride', innovation et régulation : Un modèle de duopole]," Post-Print halshs-02389002, HAL.
    • Handle: RePEc:hal:journl:halshs-02389002
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02389002
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    References listed on IDEAS

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    Keywords

    Firm; Community; Closed innovation; Open innovation; Appropriation; Firme; Communauté; Innovation fermée; Innovation ouverte;
    All these keywords.

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