Risk and Political Economy Game

Risk and Political Economy Game

• Inventors of new technologies generate new patents ( ham heaven)
• When market become established: patents bought or litigated ( crisis of capital for development)
• Incumbent industries either block development or buy out new technology
• If new technology threatens core business of old, then predatory behavior, or massive buyout
• If new technology too risky, then businesses buy not make new service.
• Thus new technologies rarely challenge the incumbents, but over 50 years can see major change in owner players: market efficient at reducing risk and adapting to change