Econ 483_Lecture 12_Optimal IP protection

Intro length breadth optimal policy length breadth

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Unformatted text preview: f Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Length & breadth ) Should patents be broad & short or narrow & long? Comparison of the policies (T , p ), e T : the patent life; say T < T Lecture 12: Optimal design of IP, ee T , p from consumers’point of view Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Short protection Optimal policy Long protection Ratio test (say λ): given the market price, the ratio of per-period pro…t to per-period DWL: π λ= DWL Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Long protection Short protection Ratio test (say λ): λ = π DWL If λ with p is larger than that with p m , e Lecture 12: Optimal design of IP, Optimal policy e T,K is a better policy. Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Length & breadth ) If two policies generate the same value (total pro…t) for the i...
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