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Racing with Uncertainty: A Patent Race Experiment

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  • Zizzo, D.J.

Abstract

This paper presents an experimental test of the multi-stage patent race model by Harris and Vickers (1987). Tied competitors invested more when nearer the end of the race, but this may have followed from a more general and unexplained pattern of a positive correlation between investment and progress in the race. The relationship between investment and gap between competitors was mostly not as predicted. Also, leaders did not invest more than (not heavily lagging) followers, and the race did not approach monopoly as the gap between competitors widened. Overall, the evidence brings only limited support to the theory.

Suggested Citation

  • Zizzo, D.J., 2001. "Racing with Uncertainty: A Patent Race Experiment," Economics Series Working Papers 9968, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:9968
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    References listed on IDEAS

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    More about this item

    Keywords

    EXPERIMENTATION ; INVESTMENTS ; TESTS;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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