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An Experiment on Protecting Intellectual Property

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Author Info

  • Joy A. Buchanan

    () (Interdisciplinary Center for Economic Science, George Mason University)

  • Bart J. Wilson

    () (Economic Science Institute, Chapman University)

Abstract

We conduct a laboratory experiment to explore whether the protection of intellectual property (IP) incentivizes people to create non-rivalrous knowledge goods, foregoing the production of other rivalrous goods. In the contrasting treatment with no IP protection, participants are free to resell and remake non-rivalrous knowledge goods originally created by others. We find that creators reap substantial profits when IP is protected and that rampant pirating is not uncommon when there is no IP protection. But most importantly, we find that IP protection in and of itself is neither necessary nor sufficient for generating wealth from the discovery of knowledge goods.

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File URL: http://www.chapman.edu/research-and-institutions/economic-science-institute/_files/WorkingPapers/buchanan-wilson-intellectualproperty.pdf
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Bibliographic Info

Paper provided by Chapman University, Economic Science Institute in its series Working Papers with number 12-09.

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Length: 36 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:chu:wpaper:12-09

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Related research

Keywords: intellectual property; experimental economics;

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References

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  1. Boldrin,Michele & Levine,David K., 2008. "Against Intellectual Monopoly," Cambridge Books, Cambridge University Press, number 9780521879286.
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Cited by:
  1. Bettina Klose & Dan Kovenock, 2012. "Extremism Drives Out Moderation," Working Papers 12-10, Chapman University, Economic Science Institute.

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