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Better Than a Compromise, a Third Way
In the debate on intellectual property rights induced by the Covid-19 pandemic vaccines and treatments are typically referred to as simple products whose manufacturing specifications need only to be shared in order to increase production capacity and accelerate access to all, more specifically to low-income populations in the developing world. We contribute to this debate by taking into account the fact that the manufacture of innovative vaccines and treatments can involve multiple technologies whose patents are held by several entities. We propose an economic approach that it is more balanced than the polar options - on which the debate has focused - of either maintaining or suspending pate...
Bruno Finds a Ball
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Horizontal R&D Cooperation and Spillovers
We test the theoretical prediction that inter-firm spillovers must necessarily be large for the profit differential between cooperation and non-cooperation in R and D to be monotone increasing with them. By using the French data from the 2002 Community Innovation Survey, we find that spillovers have a significant positive impact on the likelihood that competitors cooperate horizontally in R and D only if these spillovers exceed a threshold. Both the value and the significance of estimates increase with the flow of information firms report receiving from competitors.
Bruno Gets Lost
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Competitive Strategy
A new paradigm for balancing flexibility and commitment in management strategy through the amalgamation of real options and game theory. Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital investment today, influencing their rivals' behavior, or they can take a “wait and see” approach to avoid adverse market consequences tomorrow. In Competitive Strategy, Benoît Chevalier-Roignant and Lenos Trigeorgis describe an emerging paradigm that can quantify and balance commitment and flexibility, “option games,” by which the decision-making approaches of...
