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The Causal Effects of Competition on Innovation : Experimental Evidence

Aghion, Philippe ; Bechtold, Stefan ; Cassar, Lea ; Herz, Holger

In: The Journal of Law, Economics, and Organization, 2018, vol. 34, no. 2, p. 162-195

We design two laboratory experiments to analyze the causal effects of competition on step-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by the ex post rents for firms that operate at the same technological level, i.e. for neck-and-neck firms. First, we find that increased competition leads to a significant...

An Economic Analysis of Trade-Secret Protection in Buyer-Seller Relationships

Bechtold, Stefan ; Höffler, Felix

In: The Journal of Law, Economics, & Organization, 2011, vol. 27, no. 1, p. 137-158