Critics of Microsoft and Google's dominance claim these companies are nothing but "giants standing on the shoulders of babies," whose dominance destroys the incentives for entrants to innovate. By contrast, pro-Microsoft and pro-Google analysts stress the benefits of large, innovative firms. We...

We provide a simple framework to analyze the effect of rm dominance on incentives for Ramp;D. An increase in firm dominance, whichwe measure by a premium in consumer valuation, increases the dominant firm's incentives and decreases the rival firm's incentives for Ramp;D. These changes inuence...

We provide a simple framework to analyze the effect of firm dominance on incentives for Ramp;D. An increase in firm dominance, which we measure by a premium in consumer valuation, increases the dominant firm's incentives and decreases the rival firm's incentives for Ramp;D. These changes...

We provide a simple framework to analyze the effect of firm dominance on incentives for Ramp;D. An increase in firm dominance, which we measure by a premium in consumer valuation, increases the dominant firm's incentives and decreases the rival firm's incentives for Ramp;D. These changes...