Skip to main content

Trade Secret

  • Living reference work entry
  • First Online:
Book cover The Palgrave Encyclopedia of Strategic Management
  • 124 Accesses

Abstract

This entry provides a summary of issues on trade secret both as a legal concept and as a research subject. First, it discusses the general standards that are commonly used in the definition of trade secret and the precautionary measures and the legal system for trade secrecy. It also compares the advantages and disadvantages of the legal protection of trade secrets with that of patents, while pointing out the supplemental role of trade secret. Next, two streams of academic literature are reviewed, on firms’ strategic incentives for disclosing confidential information to competitors and to channel partners respectively. The issues examined in the economics of trade secret law are also briefly addressed.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

References

  • Arundel, A. 2001. The relative effectiveness of patents and secrecy for appropriation. Research Policy 30: 611–624.

    Article  Google Scholar 

  • Arundel, A., and I. Kabla. 1998. What percentage of innovations are patented? Empirical estimates for European firms. Research Policy 27: 127–141.

    Article  Google Scholar 

  • Cachon, G.P., and M. Fisher. 2000. Supply chain inventory management and the value of shared information. Management Science 46: 1032–1048.

    Article  Google Scholar 

  • Cohen, W.M., R.R. Nelson, and J.P. Walsh. 2000. Protecting their intellectual assets: Appropriability conditions and why US manufacturing firms patent (or not), NBER Working paper, vol. 7552. Cambridge, MA: NBER.

    Book  Google Scholar 

  • Friedman, D.D., W.M. Landes, and R.A. Posner. 1991. Some economics of trade secret law. Journal of Economic Perspectives 5: 61–72.

    Article  Google Scholar 

  • Gal-Or, E. 1986. Information transmission: Cournot and Bertrand equilibria. Review of Economic Studies 53: 85–92.

    Article  Google Scholar 

  • Gal-Or, E., T. Geylani, and A. Dukes. 2008. Information sharing in a channel with partially informed retailers. Marketing Science 27: 642–658.

    Article  Google Scholar 

  • Guo, L. 2009. The benefits of downstream information acquisition. Marketing Science 28: 457–471.

    Article  Google Scholar 

  • Guo, L., and G. Iyer. 2010. Information acquisition and sharing in a vertical relationship. Marketing Science 29: 484–506.

    Article  Google Scholar 

  • He, C., J. Marklund, and T. Vossen. 2008. Vertical information sharing in a volatile market. Marketing Science 27: 513–530.

    Article  Google Scholar 

  • Iyer, G., C. Narasimhan, and N. Niraj. 2007. Information and inventory in distribution channels. Management Science 53: 1551–1561.

    Article  Google Scholar 

  • Kulp, S.C., H.L. Lee, and E. Ofek. 2004. Manufacturer benefits from information integration with retail customers. Management Science 50: 431–444.

    Article  Google Scholar 

  • Li, L. 2002. Information sharing in a supply chain with horizontal competition. Management Science 48: 1196–1212.

    Article  Google Scholar 

  • Novshek, W., and H. Sonnenschein. 1982. Fulfilled expectations Cournot duopoly with information acquisition and release. Bell Journal of Economics 13: 214–218.

    Article  Google Scholar 

  • Png, I. P. L. 2011. Law and innovation: Evidence from the uniform trade secrets act. Working paper, National University of Singapore.

    Google Scholar 

  • Raith, M.A. 1996. A general model of information sharing in oligopoly. Journal of Economic Theory 71: 260–288.

    Article  Google Scholar 

  • Shapiro, C. 1986. Exchange of cost information in oligopoly. Review of Economic Studies 53: 433–446.

    Article  Google Scholar 

  • Shepard, A. 1996. Licensing to enhance demand for new technologies. RAND Journal of Economics 18: 360–368.

    Article  Google Scholar 

  • Villas-Boas, J.M. 1994. Sleeping with the enemy: Should competitors share the same advertising agency? Marketing Science 13: 190–202.

    Article  Google Scholar 

  • Vives, X. 1984. Duopoly information equilibrium: Cournot and Bertrand. Journal of Economic Theory 34: 71–94.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Liang Guo .

Editor information

Editors and Affiliations

Copyright information

© 2016 The Author(s)

About this entry

Cite this entry

Guo, L. (2016). Trade Secret. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_528-1

Download citation

  • DOI: https://doi.org/10.1057/978-1-349-94848-2_528-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics