Hwang, Hong; Peng, Cheng-Hau; Shih, Pei-Cyuan - In: International Review of Economics & Finance 34 (2014) C, pp. 237-245
This paper sets up a two-country model in which there is one domestic manufacturer authorizing its product to a distributor in a foreign country to investigate the effect of parallel imports (PI) on product innovation of the former. The distributor can sell the product not only to its own market...