Econ 483_Lecture 23_Drastic innovation_Contracts

Entrants using the old technology will compete the

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Unformatted text preview: ing price), p is not sustainable. Entrants, using the old technology, will compete the price down to c . Lecture 23: Contracts, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Non-drastic innovation ) The innovator could license the new technology at royalty β = c c0 All the pro…t is transferred to the innovator. Lecture 23: Contracts, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Licensing Licensing for productive e¢ ciency is considered pro-competitive. It allows the e¢ cient use & sharing to IP It does not restrict competition beyond the rights embedded in IP. Lecture 23: Contracts, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Researchers’compensation Compensation schemes Lecture 23: Contracts, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Workers trade o¤ hours of leisure for hourly earnings - What does really happen after a worker is hired? Lecture 23: Contracts, Econ483: Econ of Innovation & Technolo...
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This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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