We construct a model where incumbents can either acquire basic innovations from entrepreneurs, or wait and acquire developed innovations from entrepreneurial firms supported by venture capitalists. We show that venture-backed entrepreneurial firms have an incentive to overinvest in development...

Today, many countries around the world respond to the global warming and its consequences with various policy instruments such as e.g. taxes, subsidies, emission permit trading, regulations and information campaigns. In the economic literature, policy instruments have typically been analyzed...

In industries with network effects, incumbents' installed bases create barriers to entry that discourage entrepreneurs from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the option of selling to an incumbent increases the...

Energifrågorna står högt upp på de politiska agendorna världen över. Förnybar energi, energieffektivisering och smarta elnät är politiska ledord i de strategier som dras upp för framtidens elmarknader. Smarta elnät är ”jokern i leken” som sägs möjliggöra för både mer...