Acquisitions, entry, and innovation in oligopolistic network industries

Pehr-Johan Norbäck, Lars Persson, Joacim Tåg*

*Motsvarande författare för detta arbete

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

12 Citeringar (Scopus)

Sammanfattning

In industries with network effects, incumbents' installed bases create barriers to entry that discourage entrepreneurs from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the option of selling to an incumbent increases the innovation incentives for entrepreneurs when the network effects are strong and incumbents compete to preemptively acquire innovations. Thus, we establish that network effects and installed bases do not necessarily restrict the innovation incentives and that network effects promote acquisitions over entry.

OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftInternational Journal of Industrial Organization
Volym37
Utgåva1
Sidor (från-till)1-12
Antal sidor12
ISSN0167-7187
DOI
StatusPublicerad - 11.2014
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

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