Search results for "Coordination failure"
showing 2 items of 2 documents
Cumulative innovation, open source, and distance to frontier
2020
We develop a multistage game in which firms do cumulative research and development (R&D) to complete a lengthy process, and we study whether firms patent intermediate results or release them in Open Source. A patent holder obtains a larger reward in the market, but since in equilibrium it forecloses R&D, it remains alone to complete the process and so pays a larger cost than an Open Source firm. We have Open Source equilibria when R&D is highly complementary, R&D costs are large, and firms are sufficiently different and far from the frontier. We identify two market failures, in the forms of free riding and coordination failure, and we discuss public intervention.
The Coordination Problem in Regional Integration
2021
A catch-22 situation or coordination failure between the slow creation of well-integrated regional markets and low economic diversification (plus sophistication and specialization) is unfolding in Africa. Ubiquitous trade barriers translate into a paradoxical tariff pattern by which African neighbours are treated worse than remote trade partners. In the face of widespread irregularities and high trade costs, ‘trade facilitation’ has become an important technical approach to easing trade with the support of donor agencies. This chapter examines the systemic potential and limits of trade facilitation programmes. As a general alternative to institution-heavy, imperfect integration along the tr…