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.
|Date of creation:||Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Stony Brook, NY 11794-4384|
Web page: http://www.stonybrook.edu/commcms/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2010.
"Spying in Multi-market Oligopolies,"
2010.117, Fondazione Eni Enrico Mattei.
- Pascal Billand & Christophe Bravard & Subhadip Chakrabarti & Sudipta Sarangi, 2010. "Spying in multi-market oligopolies," Post-Print halshs-00537566, HAL.
- Sudipta Sarangi & Pascal Billand & Christophe Bravard & S. Chakrabarti, . "Spying in Multi-market Oligopolies," Departmental Working Papers 2009-11, Department of Economics, Louisiana State University.
- repec:spr:pharme:v:22:y:2004:i:4:p:225-244 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nys:sunysb:12-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.