Industrial Espionage with a Noisy Intelligence
We analyze industrial espionage in a model of two firms: a monopoly incumbent, M, and a potential entrant, E, who owns a noisy intelligence system (IS) of a certain precision a . The IS generates a signal on M’s action and E decides whether or not to enter based on this signal. We show that if a is commonly known, M is the one who benefits from a perfect IS and E who spies on M prefers a less accurate IS. If however a is a private information of E, the opposite result is obtained. E is best off with a perfect IS and M with a less accurate one.
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- repec:spr:pharme:v:22:y:2004:i:4:p:225-244 is not listed on IDEAS
- Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2010.
"Spying in multi-market oligopolies,"
- Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2010. "Spying in Multi-market Oligopolies," Working Papers 2010.117, Fondazione Eni Enrico Mattei.
- Sudipta Sarangi & Pascal Billand & Christophe Bravard & S. Chakrabarti, . "Spying in Multi-market Oligopolies," Departmental Working Papers 2009-11, Department of Economics, Louisiana State University.
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