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A model of IPRs in the international supply chain of seeds and agricultural production

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  • Eaton, Derek

Abstract

This paper analyzes the effects of varying appropriability or strength of IPRs for agricultural seeds. Farmers are modelled as heterogeneous producers, purchasing seed from an innovating monopolist in a vertical product differentiation framework. The effects of IPRs on innovation are endogenized and the welfare of consumers assessed through the price for food. The theoretical analysis reveals some novel aspects of the traditional innovation versus diffusion tradeoff. Less productive producers, and also consumers, are better off with a moderate level of appropriability and lower level of innovation. The model is extended to a two country setting consisting of North and South.

Suggested Citation

  • Eaton, Derek, 2014. "A model of IPRs in the international supply chain of seeds and agricultural production," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182643, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182643
    DOI: 10.22004/ag.econ.182643
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    Crop Production/Industries; International Relations/Trade;

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