The Unilateral Incentives for Technology Transfers: Predation by Proxy (and Deterrence)

Anthony Creane and Hideo Konishi

No 677, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: Joint production between rival firms often entails knowledge transfers without direct compensation, leaving the question as to why more efficient firms would give their rivals such an advantage. We find that such transfers are credible mechanisms to make the market more competitive so as to deter entry or force exit. We determine that with free entry such transfers are profitable and further it is optimal to predate or deter every firm possible so that a market with many firms can become a duopoly. While consumers are harmed by such action, production efficiency increases sufficient to cause welfare to increase.

Keywords: Predation; Technology Transfers (search for similar items in EconPapers)
JEL-codes: D4 L1 L41 (search for similar items in EconPapers)
Date: 2007-09-29, Revised 2008-06-19
New Economics Papers: this item is included in nep-bec, nep-com, nep-mic and nep-tid
Note: Previously circulated as "The Unilateral Incentives for Technology Transfers: Predation by Proxy"
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published, International Journal of Industrial Organization 27, 379-389, 2009

Downloads: (external link)
http://fmwww.bc.edu/EC-P/wp677.pdf main text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:677

Access Statistics for this paper

More papers in Boston College Working Papers in Economics from Boston College Department of Economics Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().