Tuesday, October 26, 2010
Posted by D. Daniel Sokol
Matthew John Holian, San Jose State University - Department of Economics and Neil N.H. Nguyen, San Jose State University - Department of Economics discuss Intellectual Property and Antitrust Limitations on Contract: Comment.
ABSTRACT: In their chapter in Dynamic Competition and Public Policy (2001, Cambridge University Press), Burtis and Kobayashi never defined their model’s discount rate, making replicating their simulation results difficult. Through our own simulations, we were able to verify their results when using a discount rate of 0.10. We also identified two new types of equilibria that the authors overlooked, doubling the number of distinct equilibria in the model.