Seminar Series

2022 - 2023

 Speaker: Jose Luis Moraga-Gonzalez (Vrije U Amsterdam).

Title: “Start-up Acquisitions and the Entrant’s and
Incumbent’s Innovation Portfolios”

joint with Esmée Dijk and Evgenia Motchenkova (both Vrije U Amsterdam).

Date: Thursday, April 6th at 12h30 (Paris Time).

Abstract: An entrant and an incumbent engage in an investment portfolio problem where each chooses how to allocate its research funds across a rival market, where they compete with one another, and a non-rival market, where they do not interact. Allowing for acquisitions distorts both players’ incentives to allocate funding across their rival and non-rival projects. We show conditions under which the incumbent, anticipating the rents that accrue from the monopolization of the rival market, moves R&D resources from other markets to the rival market. This “incumbency for buyout effect” lowers the expected rents the entrant may obtain from the contestable market, which gives it incentives to move its investment portfolio away from the rival market. We show that this strategic effect dominates the usual “innovation for buyout effect” when the entrant’s bargaining power is below a threshold. Allowing for acquisitions may improve the direction of innovation of each of the players and consumer surplus. 

Here is, a link to the speaker’s and the FEELab website:

https://sites.google.com/view/joseluismoraga

https://sites.google.com/view/feelabtbs/

You are cordially invited to participate in the following seminar of the FEELab, which will take place in Room 204, Bosco building.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr