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

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  • Jos Jansen

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    (Max Planck Institute for Research on Collective Goods)

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    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 at most one firm shares some of its 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. No other equilibria can exist.

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    Bibliographic Info

    Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2009_36.

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    Date of creation: Oct 2009
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    Handle: RePEc:mpg:wpaper:2009_36

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    Related research

    Keywords: Innovation; strategic disclosure; trade secret; Cournot duopoly; indivisibility; open source; skewed distribution;

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    Cited by:
    1. Llanes, Gastón & de Elejalde, Ramiro, 2013. "Industry equilibrium with open-source and proprietary firms," International Journal of Industrial Organization, Elsevier, vol. 31(1), pages 36-49.
    2. Cho, Myeonghwan & Jun, Byung-hill, 2013. "Information sharing with competition," Economics Letters, Elsevier, vol. 119(1), pages 81-84.

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