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Noncooperative Oligopoly and Preemptive Innovation without Winner-Take-All

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  • Marion B. Stewart

Abstract

Earlier models of innovation under oligopolistic rivalry are modified to include a “share parameter†Ã, describing the manner in which profits are divided among rivals when one firm is successful in its search for a valuable resource stock. There is a unique value of à that maximizes expected industry profits, by “guiding†noncooperative oligopolists to choose the profit-maximizing exploration rate. Moreover, setting à at this maximizing valueâ€â€which always allocates some share of industry profits to the “losers†in the exploration raceâ€â€leads to an exploration rate identical to what would be chosen by a jointly managed cartel.

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  • Marion B. Stewart, 1983. "Noncooperative Oligopoly and Preemptive Innovation without Winner-Take-All," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 681-694.
    • Handle: RePEc:oup:qjecon:v:98:y:1983:i:4:p:681-694.
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    Cited by:

    1. F. Ben Abdelaziz & M. Ben Brahim & G. Zaccour, 2008. "R&D Equilibrium Strategies with Surfers," Journal of Optimization Theory and Applications, Springer, vol. 136(1), pages 1-13, January.
    2. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    3. Levin, Mark (Левин, Марк) & Matrosova, Kseniya (Матросова, Ксения), 2017. "Development and Analysis of Economic Models of Innovation Incentives [Разработка И Исследование Экономических Моделей Стимулирования Инновационных Процессов]," Working Papers 061713, Russian Presidential Academy of National Economy and Public Administration.
    4. Gilbert, Richard J. & Katz, Michael L., 2011. "Efficient division of profits from complementary innovations," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 443-454, July.
    5. John T. Scott, 2016. "Creativity for invention insights: corporate strategies and opportunities for public entrepreneurship," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 409-448, December.
    6. Flavio DelbonoBy & Luca Lambertini, 2022. "Innovation and product market concentration: Schumpeter, arrow, and the inverted U-shape curve [Lessons from schumpeterian growth theory]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 297-311.
    7. Kopp, Andreas, 1999. "Direct communication, costs of networking and localisation of technical knowledge," Kiel Working Papers 903, Kiel Institute for the World Economy (IfW Kiel).
    8. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
    9. Babacar Ndiaye & Cheikh Thiaw, 2011. "Positioning strategies in the case of oligopolistic competition: The case of telecommunications industry in Senegal," Post-Print halshs-00864556, HAL.
    10. Wolfgang Becker & Jurgen Peters, 1998. "R&D-Competition Between Vertical Corporate Networks: Market Structure and Strategic R&D-Spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 51-72.
    11. Perevyshin, Yury (Перевышин, Юрий) & Sinelnikov-Murylev, Sergei Germanovich (Синельников-Мурылев, Сергей Германович) & Skrobotov, Anton (Скроботов, Антон) & Trunin, Pavel (Трунин, Павел), 2018. "Analysis of Regional Price Differentiations [Анализ Региональной Дифференциации Цен]," Published Papers 011801, Russian Presidential Academy of National Economy and Public Administration.

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