Daniel F. Spulber’s research while affiliated with Northwestern University and other places

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Publications (147)


Firm Matching in the Market for Technology: Business Stealing and Business Creation*
  • Article

October 2023

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16 Reads

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1 Citation

Journal of Industrial Economics

Pere Arqué‐Castells

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Daniel F. Spulber

We propose an empirical framework for studying the prevalence of business creation and business stealing in technology transfers from the effect of technological overlap and product market overlap. We estimate the model on a new dataset that tracks interactions in the market for technology between publicly held US companies. Product market overlap has a negative effect on matching patterns that is suggestive of business stealing while technological proximity has a positive effect that is consistent with business creation. We assess the relevance of IP rights in deterring undesirable technology adoptions and discuss the suitability of alternative strategies of technology exchange.




Antitrust and Innovation Competition
  • Article
  • Full-text available

May 2022

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103 Reads

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14 Citations

Journal of Antitrust Enforcement

Innovation competition presents challenges for antitrust law and enforcement policy. Innovation has generated changes in the nature of competition as firms introduce new transaction techniques, product designs, and production processes. Innovation competition is driving the ‘Business Revolution’ in retail, wholesale, manufacturing, services, and financial technology. Transaction innovation in online platforms and multi-sided markets has raised antitrust concerns about anticompetitive conduct, vertical restraints, consumer privacy, and barriers to entrepreneurship. The article argues that although antitrust policy makers recognize the importance of innovation competition, they need to update their economic frameworks. Antitrust policy makers need to move beyond traditional analysis based on the twin frameworks of perfect competition and imperfect competition. The article provides an introduction to the emerging Economics of Technology & Innovation and examines some implications for antitrust policy. First, antitrust policy should shift its focus from price competition without technological change to address non-price aspects of innovation competition. Secondly, antitrust policy should apply economic analysis that recognizes the critical role of Intellectual Property and technology standards in innovation competition. Thirdly, antitrust policy toward horizontal and vertical mergers should consider developments in the economic analysis of innovation competition.

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THE EXTENT OF THE MARKET AND INTEGRATION THROUGH FACTOR MARKETS: EVIDENCE FROM WHOLESALE ELECTRICITY

January 2020

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12 Reads

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1 Citation

Economic Inquiry

We document the influence of factor markets in determining the extent of the market, appealing to the Mundell hypothesis that trade in goods and factor markets are substitutes. We confirm this influence using the U.S. wholesale market for electric power. Although the Eastern, Western, and Texas regions cannot trade electricity, inputs such as natural gas move freely across these regions. Through a set of price transmission ratios, and a supply model for natural gas, we find regional electricity shocks do propagate across regions. We conclude output markets institutionally in autarky achieve modest degrees of economic integration through factor markets. (JEL C32, L94, Q41)



The economics of markets and platforms: SPULBER

November 2018

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184 Reads

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40 Citations

Journal of Economics & Management Strategy

Advances in the study of both markets and platforms contribute to economics. Platforms are typically digital markets, although platforms can designate markets generally. So, the economics of markets and the economics of platforms are one and the same. Platforms show the critical role of intermediaries in endogenous price adjustment and market clearing. The platform model remedies problems with general equilibrium analysis by combining and extending the basic Walrasian and Marshalian market models. The analysis of platforms provides explanations for the bid–ask spread, including market power, search costs, matching costs, adverse selection, and moral hazard. The study of platforms demonstrates the importance of participation and coordination in the formation of markets. The discussion emphasizes that platforms have significant implications for the theory of the firm. The analysis further considers how platforms affect innovation and entrepreneurship.


Citations (80)


... The IIoT, an extension of the IoT focusing on industrial applications, aims at elevating manufacturing SMEs to new efficiency levels through innovative, interconnected industrial systems [5,27]. These systems facilitate global connectivity and ensure meaningful communication between devices, paving the way for intelligent artefacts that respond to user interactions and contribute to complex value creation processes [28]. ...

Reference:

Coopetition with the Industrial IoT: A Service-Dominant Logic Approach
Firm Matching in the Market for Technology: Business Stealing and Business Creation*
  • Citing Article
  • October 2023

Journal of Industrial Economics

... A large number of articles have highlighted that a potential solution could be to find new biomarkers. For clinical tractability, these should ideally be measurable in peripheral blood Thousands of potential biomarkers for cancer diagnosis have been proposed 4,5,19,[24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42] . However, the clinical value of such biomarkers remains uncertain. ...

Antitrust and Innovation Competition

Journal of Antitrust Enforcement

... The challenge here is to approximate the total value an innovation creates over its lifetime. We rely on several estimates from the literature to assess the private value (Deng, 2007;Bessen, 2009;Gambardella et al., 2008) and spillovers created (Bloom et al., 2013;Zacchia, 2020;Myers and Lanahan, 2022;Arque-Castells and Spulber, 2022) by patented inventions. While the result of this exercise is subject to considerable uncertainty because value estimates in the literature do not agree well, the cost implied by the effect on innovation is large. ...

Measuring the Private and Social Returns to R&D: Unintended Spillovers versus Technology Markets
  • Citing Article
  • March 2022

Journal of Political Economy

... Merging railroads view mandated access as undesirable and typically reach negotiated access agreements with third parties to prevent a less-advantageous regulatory ruling or to head off costly legal action (Wilner, 1997, p. 228). Regulators also tread carefully in mandating access to avoid even the appearance of unfairly redistributing one railroad's rights to other carriers or to shippers (Sidak & Spulber, 1997). A poorly reasoned decision to mandate access may leave the government itself liable to litigation. ...

Deregulatory Takings and the Regulatory Contract: The Competitive Transformation of Network Industries in the United States
  • Citing Book
  • November 1997

... As companies grow and become more globalized, companies might decide to import R&D from foreign providers. 2 This is a risky and costly strategy for the firm because outsourcing from foreign providers implies important organizational changes to instruct and monitor the foreign suppliers (Castellani & Pieri, 2013;Federico, 2010;Grossman & Rossi-Hansberg, 2012), to integrate foreign knowledge and, as Property Right Theory (PRT) suggests, to avoid potential holdup problems (Azoulay, 2004;Ulset, 1996;Wadhwa et al., 2017) and business stealing effects (Arqué-Castells & Spulber, 2019b). ...

Firm Matching in the Market for Technology: Harnessing Creative Destruction
  • Citing Article
  • August 2020

Academy of Management Proceedings

... Liu, Gui, and Ran 2018). Recent research indicates that patent alliances' direct and indirect effects galvanise innovation within member companies and throughout their supply chains (Spulber 2019). Furthermore, these alliances enable members to tap into potential licensing revenues. ...

Licensing Standard Essential Patents: Bargaining and Incentives to Invent
  • Citing Article
  • January 2019

SSRN Electronic Journal

... As there are no costs associated with keeping accommodations listed on Airbnb and a significant portion of the supply comes from non-professional hosts, there is no incentive to remove these listings from the platform even if they are not offered or rented. This results in an apparent excess in supply that is ineffective in practice, as discussed by previous studies, both theoretically (Spulber, 2019) and empirically (Balasubramanian and Ragavan, 2019;Moreno-Izquierdo et al., 2020). ...

The economics of markets and platforms: SPULBER
  • Citing Article
  • November 2018

Journal of Economics & Management Strategy

... The economic impact of the platform economy is substantial, with the market expected to reach $335 billion by 2025 and $600 billion by 2027, growing at a compound annual growth rate (CAGR) of 32.08% [12,16]. This growth is fueled by ongoing digital transformation and the adoption of digital platforms in sectors such as retail, entertainment, transport, and finance [28]. However, entrepreneurs in platform economies face several challenges: access to capital where classical financing models often don't align well with the high growth potential of platforms [13]; talent acquisition and retention [1]; lack of mentorship and training as this can hinder the development of entrepreneurs in the platform economy [26]. ...

The Economics of Markets and Platforms
  • Citing Article
  • January 2018

SSRN Electronic Journal

... World trade is impossible without standards because ''standards control access to virtually every market in global commerce and directly affect more than eighty per cent of world trade'' (Purcell & Kushnier, 2016). Many active standards organisations with thousands of members develop tens of thousands of standards every year that interact with the innovative decisions of most manufacturers (Baron & Spulber, 2018). How might standardisation still not be sufficiently known to the general public or even researchers? ...

Technology Standards and Standard Setting Organizations: Introduction to the Searle Center Database
  • Citing Article
  • September 2018

Journal of Economics & Management Strategy

... Second, the important issue in the interaction between standardization and technical R&D is the alignment of their technological and time requirements. Economic entities should consider not just market acceptance, but also the interests of SEP licensees while developing standards [101][102][103]. Third, standardization actors in developing countries could greatly strengthen international standards cooperation, make their standards benchmark with the world's best level, and utilize all their efforts to facilitate the "going abroad" of their standards to participate in international standard competitions [104,105]. ...

Standard Setting Organisations and Standard Essential Patents: Voting and Markets

The Economic Journal