Vincenzo Denicolò

1Luigi Alberto Franzoni
1Annalisa Biagi
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We analyze an abstract model of trading where N principals submit quantity-payment schedules that describe the contracts they offer to an agent, and the agent then chooses how much to trade with every principal. This represents a special class of common agency games with complete information. We study all the subgame perfect Nash equilibria of these games,(More)
Two distinct theories of patents, the " reward theory " and the " contract theory, " are customarily adopted by the courts to justify the patent system. The reward theory maintains that the function of the patent system is to remunerate successful innovators so as to encourage R&D effort. In contrast, the contract theory holds that the function of the(More)
This paper studies the optimal division of pro…t with complementary innovations. We identify circumstances in which the research should be conducted sequentially, targeting one innovation after another in a pre-speci…ed order, even if each innovation can be achieved independently of the others. We then consider the implementation of this sequential pattern(More)
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