Econ 483_Lecture 12_Optimal IP protection

Intro length breadth optimal policy length breadth

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Unformatted text preview: 83: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Intro Length Breadth Optimal policy Length & breadth [this slide: optional (not required)] Thus e ee T [p q + DWL (p )] < T [p q + DWL (p )] e Give also that p q T = p q T , we get ee e e T DWL (p ) e T DWL (p ) < T DWL (p ) ) e < ) T DWL (p ) e DWL (p ) pq pq ee pq < < ) ) pq ee DWL (p ) e DWL (p ) DWL (p ) e λ (p ) < λ (p ) e ) In each period of protection, the better policy is the one for which λ is greater. Lecture 12: Optimal design of IP, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved....
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