Econ 483_Lecture 3_Patents_Market structure

In some cases the reward may be disproportionate

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Unformatted text preview: ts cannot be modi…ed according to: the market structure the protection needed Some classes of innovation are under- or over- rewarded relative to the costs of invention (not based on economic reasoning). In some cases, the reward may be disproportionate relative to the invention step. Lecture 3: IP & market structure, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. IP Characteristics Patents & market structure Lecture 3: IP & market structure, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. IP Characteristics Knowledge as a public good Knowledge is focused on discovering useful information ... & is protected by patents. ) Knowledge is ‘ public good’ . Non-rivalry in consumption: The consumption of one individual does not reduce the availability of goods to others Non-excludability: The goods cannot be con…ned to those who have paid for them. Lecture 3: IP & market structure, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. IP Characteristics Are cars public goods? - No; they are private goods - excludable & rivalrous. Is satellite television public good? - No; it is excludable but non-rivalrous. Are personal electonics public goods? - No; they are private goods - excludable & rivalrous. Is the free-to-air television a public good? - Yes. Is the exchange of MP3 music …les on the internet a public good (suppose that there is no e¤ective control)? - Yes. Lecture 3...
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