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An Experiment on Protecting Intellectual Property

Author

Listed:
  • Joy Buchanan

    (Interdisciplinary Center for Economic Science and Department of Economics, George Mason University)

  • Bart 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 common when there is no IP protection, but IP protection in and of itself is neither necessary nor sufficient for generating wealth from the discovery of knowledge goods. Rather, individual entrepreneurship is the key. Length: 36

Suggested Citation

  • Joy Buchanan & Bart Wilson, 2014. "An Experiment on Protecting Intellectual Property," Working Papers 1044, George Mason University, Interdisciplinary Center for Economic Science.
    • Handle: RePEc:gms:wpaper:1044
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    References listed on IDEAS

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    Cited by:

    1. Benslimane, Ismaël & Crosetto, Paolo & Magni-Berton, Raul & Varaine, Simon, 2023. "Intellectual property reform in the laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 204-221.
    2. Bojan Ćudić, 2021. "Factors impacting patent applications in European countries," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 573-589, June.
    3. Bettina Klose & Dan Kovenock, 2015. "Extremism drives out moderation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 861-887, April.
    4. Julia Brüggemann & Kilian Bizer, 2016. "Laboratory experiments in innovation research: a methodological overview and a review of the current literature," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-13, December.
    5. Brüggemann, Julia & Proeger, Till, 2017. "The effectiveness of public subsidies for private innovations: An experimental approach," University of Göttingen Working Papers in Economics 266, University of Goettingen, Department of Economics, revised 2017.
    6. Brueggemann, Julia & Meub, Lukas, 2015. "Experimental evidence on the effects of innovation contests," University of Göttingen Working Papers in Economics 251, University of Goettingen, Department of Economics.
    7. Haber, Stephen H. & Werfel, Seth H., 2016. "Patent trolls as financial intermediaries? Experimental evidence," Economics Letters, Elsevier, vol. 149(C), pages 64-66.
    8. Brüggemann, Julia & Crosetto, Paolo & Meub, Lukas & Bizer, Kilian, 2016. "Intellectual property rights hinder sequential innovation. Experimental evidence," Research Policy, Elsevier, vol. 45(10), pages 2054-2068.
    9. Mittone, Luigi & Morreale, Azzurra & Vu, Thi-Thanh-Tam, 2022. "What drives innovative behavior?- An experimental analysis on risk attitudes, creativity and performance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
    10. Bart Wilson, 2015. "Further towards a theory of the emergence of property," Public Choice, Springer, vol. 163(1), pages 201-222, April.
    11. Brüggemann, Julia & Meub, Lukas, 2017. "Experimental evidence on the effects of innovation contests," Information Economics and Policy, Elsevier, vol. 39(C), pages 72-83.
    12. Buchanan, J., 2022. "Willingness to be paid: Who trains for tech jobs?," Labour Economics, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    intellectual property; experimental economics;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • K39 - Law and Economics - - Other Substantive Areas of Law - - - Other

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