PHDBA602 (Innovation Models)

PHDBA602 is a (for credit) Directed Studies course, that doctoral students can use to develop their own courses with a professor. This page provides information about a directed study course with Michael Katz on that centers around economic models of innovation.

Format

The format is:

• One, perhaps two, models per class
• One class per week, with a timeslot TBD.
• The student will write up the model ahead of time (on this wiki)
• The class will be used to:
  • Discuss the intricacies of the model
  • Discuss modelling choices, with a view to helping the student understand how to build models
  • Place the model in the context of the broader literature

Papers

Patent Races

• Reinganum, Jennifer F. (1989), "Chapter 14 The timing of innovation: Research, development, and diffusion", In: Richard Schmalensee and Robert Willig, Editor(s), Handbook of Industrial Organization, Elsevier, Volume 1, Pages 849-908. (pdf)
  • Loury G.C.(1979), "Market structure and innovation", Quarterly Journal of Economics, 93, pp. 395-410. (pdf)
  • Lee, T. and L.L. Wilde (1980), "Market structure and innovation: A reformulation", Quarterly Journal of Economics, 94, pp. 429-436. (pdf)

Endogenous Spillovers

• Spence, Michael (1984), "Cost Reduction, Competition, and Industry Performance', Econometrica, Vol. 52, No. 1 (Jan.), pp. 101-122 (pdf)
• Katz, Michael L. (1986), "An Analysis of Cooperative Research and Development", The RAND Journal of Economics, Vol. 17, No. 4 (Winter), pp. 527-543 pdf

Patent Pools

• Lerner, Josh, Marcin Strojwas, and Jean Tirole (2003), "Cooperative Marketing Agreements Between Competitors: Evidence from Patent Pools", April 27, NBER Working Paper pdf
• Lerner, Josh and Jean Tirole (2004),"Efficient Patent Pools", The American Economic Review, Volume 94, Number 3, June, pp. 691-711(21) pdf

Optimal Design of IP

• Scotchmer, Suzanne (2004), "Chapter 4: On the Optimal Design of Intellectual Property", in "Innovation and Incentives", First MIT Press, ISBN-13: 978-0-262-19515-7

Cummulative Innovation

• Scotchmer, Suzanne (2004), "Chapter 5: Standing on the Shoulders of Giants: Protecting Cummulative Innovators", in "Innovation and Incentives", First MIT Press, ISBN-13: 978-0-262-19515-7

Licensing and Joint Ventures

• Scotchmer, Suzanne (2004), "Chapter 6: Licensing, Joint Ventures and Competition Policy", in "Innovation and Incentives", First MIT Press, ISBN-13: 978-0-262-19515-7

Open Source

• Tirole, Jean and Josh Lerner (2002), "Some Simple Economics of Open Source", Journal of Industrial Economics, Vol. 50, No. 2, pp. 197-234, June pdf

Modularity

• Ethiraj, Sendil K. and Daniel Levinthal (2004), "Modularity and Innovation in Complex Systems", Management Science, Vol. 50, No. 2, Feb., pp. 159-173 pdf
• Ethiraj, Sendil K., Daniel Levinthal, and Rishi R. Roy (2008), "The Dual Role of Modularity: Innovation and Imitation", Management Science, Vol. 54, No. 5, May, pp. 939-955 pdf
• Schilling, Melissa A. (2000), "Toward a General Modular Systems Theory and Its Application to Interfirm Product Modularity", The Academy of Management Review, Vol. 25, No. 2, Apr., pp. 312-334 pdf

Complementary Markets

• Farrell, Joseph and Michael L. Katz (2000), "Innovation, Rent Extraction, and Integration in Systems Markets", The Journal of Industrial Economics, Vol. 48, No. 4, Dec., pp. 413-432 pdf
• Gawer, Annabelle and Rebecca Henderson (2007), "Platform Owner Entry and Innovation in Complementary Markets: Evidence from Intel", Journal of Economics & Management Strategy, Volume 16, Number 1, Spring 2007, 1-34 pdf

Platforms and Two-sided markets

• Armstrong, Mark (2006), "Competition in Two-Sided Markets", The RAND Journal of Economics, Vol. 37, No. 3, Autumn, pp. 668-691 pdf
• Hagiu, Andrei (2009), "Multi-Sided Platforms: From Microfoundations to Design and Expansion Strategies", Working Paper, Harvard Business School, Strategy Unit pdf
• White, Alexander and E. Glen Weyl (2010), "Imperfect Platform Competition: A General Framework", NET Institute Working Paper No. 10-17 pdf
• Hagiu, Andrei (2009), "Two-Sided Platforms: Product Variety and Pricing Structures", Journal of Economics & Management Strategy, Volume 18, Issue 4, pages 1011-1043, Winter pdf
• Rochet, Jean-Charles and Jean Tirole (2003), "Platform Competition in Two-Sided Markets", The European Economic Association, June, Vol. 1, No. 4, Pages 990-1029, doi:10.1162/154247603322493212 pdf

Networks

• Jackson, Matthew O. (2003), "A Survey of Models of Network Formation: Stability and Effciency" in Group Formation in Economics: Networks, Clubs, and Coalitions, edited by Gabrielle Demange and Myrna Wooders, Cambridge University Press pdf