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An Anonymous Buyer of Intangible Property

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  • Yoichi Nishihara

Abstract

In a market for ideas, an intermediary often masks buyers’ information that is not to be exposed to the public. This article shows that such obscuration plays an important role in removing excess inertia because it prevents the emergence of a bandwagon effect among buyers. This model applies to outsourcing-type R&D competition. Although innovation is spurred, welfare implications are ambiguous because the competition among buyers becomes harsher than it is in the absence of the intermediary. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Yoichi Nishihara, 2014. "An Anonymous Buyer of Intangible Property," Journal of Industry, Competition and Trade, Springer, vol. 14(4), pages 511-518, December.
    • Handle: RePEc:kap:jincot:v:14:y:2014:i:4:p:511-518
    DOI: 10.1007/s10842-013-0173-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Bandwagon effect; Noise; L15;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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