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Share to Scare: Technology Sharing in the Absence of Intellectual Property Rights

Author

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  • Jos Jansen

    (Max Planck Institute for Research on Collective Goods)

Abstract

I study the incentives of Cournot duopolists to share their technologies with their competitor in markets where intellectual property rights are absent and imitation is costless. The trade-off between a signaling effect and an expropriation effect determines the technology-sharing incentives. In equilibrium at most one firm shares some of its technologies. For similar technology distributions, there exists an equilibrium in which nobody shares. If the technology distributions are skewed towards efficient technologies, then there may exist equilibria in which one firm shares all technologies, only the best technologies, or only intermediate technologies. No other equilibria can exist.

Suggested Citation

  • Jos Jansen, 2009. "Share to Scare: Technology Sharing in the Absence of Intellectual Property Rights," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2009_36, Max Planck Institute for Research on Collective Goods.
    • Handle: RePEc:mpg:wpaper:2009_36
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    File URL: http://www.coll.mpg.de/pdf_dat/2009_36online.pdf
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    Citations

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    Cited by:

    1. Llanes, Gastón & de Elejalde, Ramiro, 2013. "Industry equilibrium with open-source and proprietary firms," International Journal of Industrial Organization, Elsevier, vol. 31(1), pages 36-49.
    2. Cho, Myeonghwan & Jun, Byung-hill, 2013. "Information sharing with competition," Economics Letters, Elsevier, vol. 119(1), pages 81-84.

    More about this item

    Keywords

    Innovation; strategic disclosure; trade secret; Cournot duopoly; indivisibility; open source; skewed distribution;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets

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