Appropriation and Intellectual Property
نویسندگان
چکیده
A standard rationale for intellectual property is that by awarding a monopoly to innovators the government increases the amount of social surplus appropriated from invention, thereby improving efficiency. Indeed, if an inventor can appropriate the full surplus from his invention the first best will be obtained. We observe that while full appropriation is sufficient for efficiency, it is not necessary – in fact full appropriation by marginal individuals is sufficient. We then show how in a world in which competitors are strategic agents competition is less fierce over marginal contributions, and as a result government awards of monopoly may be socially undesirable. 1 This material is based upon work supported by the NSF under Grant No. SES-03-14713 and the Spanish MES under Grants No. SEJ 2005-08783-C04-01 and ECO2008-06395-C05-01. 2 Department of Economics, Washington University in St. Louis.
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تاریخ انتشار 2010