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

Dieses Objekt wird bereitgestellt von:
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

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