Arbeitspapier
Acquisitions, Entry and Innovation in Network Industries
Why do so many high-priced acquisitions of entrepreneurial firms take place in network industries? We develop a theory of commercialization (entry or sale) in network industries showing that high equilibrium acquisition prices are driven by the incumbents' desire to prevent rivals from acquiring innovative entrepreneurial firms. This preemptive motive becomes more important when there is an increase in network effects. A consequence is higher innovation incentives under an acquisition relative to entry. A policy enforcing strict compatibility leads to more entry, but can be counterproductive by reducing bidding competition, thereby also reducing acquisition prices and innovation incentives.
- Sprache
-
Englisch
- Erschienen in
-
Series: IFN Working Paper ; No. 867
- Klassifikation
-
Wirtschaft
Market Structure, Firm Strategy, and Market Performance: General
Information and Product Quality; Standardization and Compatibility
Entrepreneurship
Regulation and Industrial Policy: General
Information and Internet Services; Computer Software
Innovation and Invention: Processes and Incentives
- Thema
-
Acquisitions
Commercialization
Compatibility
Entry
Network effects
Innovation
R&D
Regulation
Übernahme
Kommerzialisierung
Netzwerkökonomik
Innovation
Regulierung
E-Business
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Norbäck, Pehr-Johan
Persson, Lars
Tåg, Joacim
- Ereignis
-
Veröffentlichung
- (wer)
-
Research Institute of Industrial Economics (IFN)
- (wo)
-
Stockholm
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Norbäck, Pehr-Johan
- Persson, Lars
- Tåg, Joacim
- Research Institute of Industrial Economics (IFN)
Entstanden
- 2011