Advanced Search
MyIDEAS: Login to save this paper or follow this series

Coordinating Inventive and Innovative Decisions Through Markets with Prices: An Experimental Study of Patent Markets with Transparent Prices

Contents:

Author Info

  • Eskil Ullberg

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

Abstract

The patent system makes organized markets in patents with transparent prices possible. Such prices are here investigated as "signals" for inventors and innovators alike of valuable "technology areas," in an experimental study. They inform decisions of specialized "firms" on allocation of resources for invention given a search space of induced technology values. The traditional hierarchical model of coordinating invention and innovation in a vertically integrated firm is replaced by coordination of these activities among specialized firms through a "market" with prices. The experimental study builds on a study focusing on price mechanisms with exogenous technology values to a study of an economic environment with "endogenous" technology values. The results suggest that coordination clearly takes place but differs considerably between the institutions and patent validity tested (a 3 x 2 design). As with the price study, demand-side bidding in both dimensions of the linear contract appears to yield the broadest search scope, and thus the best chances for the allocation of resources for invention. Multiple end-states are observed, especially for institutions with less demand-side bidding, indicating imprecise price signals for institutions similar to today's personal exchange. Coordination with prices appears to increase the dynamic gains of the patent system through price information to reduce or better inform about the risk in investments in new technology.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://repec.ices-experiments.org/pdf/1018.pdf
Download Restriction: no

Bibliographic Info

Paper provided by George Mason University, Interdisciplinary Center for Economic Science in its series Working Papers with number 1018.

as in new window
Length: 21
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:gms:wpaper:1018

Contact details of provider:
Postal: 3330 Washington Blvd., Arlington, VA 22201
Phone: 703-993-4850
Fax: 703-993-4851
Email:
Web page: http://ices.gmu.edu/
More information through EDIRC

Related research

Keywords: patents; trade; licensing; intellectual property; experiments;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Christoph Engel & Marco Kleine, 2013. "Who is Afraid of Pirates? An Experiment on the Deterrence of Innovation by Imitation," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2013_07, Max Planck Institute for Research on Collective Goods, revised Nov 2013.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gms:wpaper:1018. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stan Tsirulnikov).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.