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Matching Demand and Supply in a Weightless Economy: Market-Driven Creativity With and Without IPRs

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  • Quah, Danny

Abstract

Many cultural products have the same non-rival nature as scientific knowledge. They therefore face identical difficulties in creation and dissemination. One traditional view says market failure is endemic – societies tolerate monopolistic inefficiency in intellectual property (IP) protection to incentivize the creation and distribution of intellectual assets. This Paper examines that trade-off in dynamic, representative agent general equilibrium, and characterizes socially efficient creativity. Markets for intellectual assets protected by IP rights can produce too much or too little innovation.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3317.

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Date of creation: Apr 2002
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Handle: RePEc:cpr:ceprdp:3317

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Related research

Keywords: cultural good; finitely expansible; innovation; intellectual asset; intellectual property; internet; IP valuation; IPR; knowledge product; MP3; non-rival; software;

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Cited by:
  1. Lars Frederiksen & Silvia Rita Sedita, 2005. "Embodied Knowledge Transfer Comparing inter-firm labor mobility in the music industry and manufacturing industries," DRUID Working Papers 05-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  2. Patrick Legros, 2005. "Art and the Internet: Blessing the Curse?," NajEcon Working Paper Reviews 172782000000000001, www.najecon.org.

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