Antitrust in innovative industries
By: Ilya Segal, Michael Whinston.
Contributors: Whinston, Michael Dennis.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11525; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11525.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Technological innovations -- Economic aspects.; Antitrust law.
Description: "We study the effects of antitrust policy in industries with continual innovation.  A more protective antitrust policy may have conflicting effects on innovation incentives, raising the profits of new entrants, but lowering those of continuing incumbents.  We show that the direction of the net effect can be determined by analyzing shifts in innovation benefit and supply holding the innovation rate fixed.  We apply this framework to analyze several specific antitrust policies.  We show that in some cases, holding the innovation rate fixed, as suggested by our comparative statics results, the tension does not arise and a more protective policy necessarily raises the rate of innovation"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.