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A Model of Forum Shopping

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  • Josh Lerner
  • Jean Tirole

Abstract

Owners of intellectual property or mere sponsors of an idea (e.g., authors, security issuers, sponsors of standards) resort to more or less independent certifiers to persuade potential users (buyers or adopters) of the worth of their property or idea. We analyze the sponsor?s choices of certifier and design, social preferences regarding these choices, and the impacts thereon of multiple categories of users, of a downstream presence of the sponsor, and of certifier market power. Finally, we study strategic forum shopping by sponsors of competing ideas. (JEL D82, 031, 034)

Suggested Citation

  • Josh Lerner & Jean Tirole, 2006. "A Model of Forum Shopping," American Economic Review, American Economic Association, vol. 96(4), pages 1091-1113, September.
    • Handle: RePEc:aea:aecrev:v:96:y:2006:i:4:p:1091-1113
    DOI: 10.1257/aer.96.4.1091
    Note: DOI: 10.1257/aer.96.4.1091
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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