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

Author

Listed:
  • Thomas Le Texier

    (IDEC - Center for Innovation, Digital Economics and Competition - UR - Université de Rennes, UR - Université de Rennes)

  • 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, 2021. "Hybrid’ competition, innovation outcomes and regulation: A duopoly model [Concurrence 'hybride', innovation et régulation : un modèle de duopole biface]," Post-Print halshs-03242073, HAL.
    • Handle: RePEc:hal:journl:halshs-03242073
    as

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