The value of a new idea: knowledge transmission, workers' mobility and market structure
We model the process of knowledge transmission among ﬁrms via workers mobility as a multi-stage game. In our setup an idea to be realized needs that the agent informed about the idea recruits another agent from a pool of uninformed people. This constraint generates a recursive eﬀect of knowledge transmission via players mobility across ﬁrms which aﬀects simultaneously the players payoﬀs and the number of active players engaged in market competition. We provide suﬃcient conditions for the game to possess a unique symmetric subgame perfect equilibrium in which all incumbent players deter the exit of their collaborators. The equilibrium outcome is shown to depend upon the success of the idea over time, expressed by the behaviour of the market demand and on playerstime preferences. A few other intuitions are provided on the interplay between technology, market structure and the market value of an innovative idea.
|Date of creation:||10 Jul 2005|
|Date of revision:||Jan 2006|
|Publication status:||Published in Chaos, Solitons and Fractals 29, 2006.29(2006): pp. 697-706|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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