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Bargaining and Sharing Knowledge

Author

Listed:
  • Sudipto Bhattacharya
  • L-A Gérard-Varet
  • Claude d'Aspremont

Abstract

We consider the problem of bargaining over the disclosure of interim research knowledge, between two participants in a R & D race or contest, for an ultimate, patentable invention. Licensing fee schedules, as functions of the 'amount of knowledge' disclosed by the leading to the lagging agent, are considered. Conventional results, on delays in bargaining and surplus sharing in private goods environments, are sharply modified by the public good nature of innovation, and by the fundamental nonconcavity of payoffs with respect to disclosure of interim research knowledge.

Suggested Citation

  • Sudipto Bhattacharya & L-A Gérard-Varet & Claude d'Aspremont, 1996. "Bargaining and Sharing Knowledge," STICERD - Theoretical Economics Paper Series /1996/293, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stitep:/1996/293
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    Cited by:

    1. Cozzi, Guido, 1999. "R&D Cooperation and Growth," Journal of Economic Theory, Elsevier, vol. 86(1), pages 17-49, May.
    2. Gamal Atallah, 2003. "Information sharing and the stability of cooperation in research joint ventures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 531-554.
    3. Rosenkranz, Stephanie & Schmitz, Patrick W., 1999. "Know-how disclosure and incomplete contracts," Economics Letters, Elsevier, vol. 63(2), pages 181-185, May.
    4. Severinov,S., 1999. "On information sharing and incentives in R&D," Working papers 26, Wisconsin Madison - Social Systems.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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