EconPapers    
Economics at your fingertips  
 

Verifying High Quality: Entry for Sale

Pehr-Johan Norbäck (), Lars Persson and Roger Svensson ()

No 1186, Working Paper Series from Research Institute of Industrial Economics

Abstract: When and how do entrepreneurs sell their inventions? To address this issue, we develop an endogenous entry-sale asymmetric information oligopoly model. We show that lowquality inventions are sold directly or used for own entry. Inventors who sell post-entry use entry to credibly reveal information on quality. Incumbents are then willing to pay high prices for high-quality inventions to preempt rivals from obtaining them. Using Swedish data on patents granted to small firms and individuals, we find evidence that high-quality inventions are sold under preemptive bidding competition, post entry.

Keywords: Acquisitions; Innovation; Start-ups; Ownership; Patents; Verification; Quality (search for similar items in EconPapers)
JEL-codes: G24 L10 L20 M13 O30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ent, nep-ind, nep-ino and nep-sbm
Date: 2017-10-30
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ifn.se/wfiles/wp/wp1186.pdf (application/pdf)

Related works:
Working Paper: Verifying High Quality: Entry for Sale (2018) Downloads
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:hhs:iuiwop:1186

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().

 
Page updated 2019-11-11
Handle: RePEc:hhs:iuiwop:1186