Contracting for Innovation: Vertical Disintegration and Interfirm Collaboration

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چکیده

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Contracting for Innovation: Vertical Disintegration and Interfirm Collaboration

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Vertical Disintegration

With economies of scale, a vertically integrated firm can lower its upstream cost by supplying downstream competitors. The competitors may strategically choose not to purchase from the integrated firm, unless the latter’s price for the intermediate good is sufficiently lower than those of alternative suppliers. In a simple model of dynamic scale economies through learning by doing, equilibrium ...

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Service innovation is recognized as a fundamental source of competitive advantage in B2B settings, with positive effects on customers, business partners, employees, and society. Scholars have pointed out that innovation does not result from a single economic actor but from a complex process in which a range of actors interact. Previous studies on service innovation in B2B highlight the integrat...

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Contracting for Innovation under Ambiguity

At any given point in time, the collection of assets that exist in the economy is observable. Each asset is a function of a set of contingencies. The union taken over all assets of these contingencies is what we call the set of publicly known states. An innovation is a set of states that are not publicly known along with an asset (in a broad sense) that pays contingent on those states. The crea...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2008

ISSN: 1556-5068

DOI: 10.2139/ssrn.1289428