A Bayesian Real Option Approach to Patents and Optimal Renewal Fees
AbstractThis article aims at estimating the optimal profile of renewal fees patent offices should implement. It is at the crossroad of two strands of literature. The first strand is the theoretical literature analysing renewal fees as an optimal revelation mechanism. The second strand is the econometric literature developing real option models of patent renewal decisions to assess the value of patents. Using data from the French patent office, we find that there is little room to lower the social cost of patents without affecting the monetary incentives to apply for a patent and innovate. We show that a menu of optimally defined profiles helps to further discriminate among patents.
Download InfoIf 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.
Bibliographic InfoPaper provided by HAL in its series Working Papers with number hal-00419330.
Date of creation: 23 Sep 2009
Date of revision:
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00419330/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-10 (All new papers)
- NEP-INO-2009-10-10 (Innovation)
- NEP-IPR-2009-10-10 (Intellectual Property Rights)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bosworth, D L, 1978. "The Rate of Obsolescence of Technical Knowledge-A Note," Journal of Industrial Economics, Wiley Blackwell, vol. 26(3), pages 273-79, March.
- Gans Joshua S & King Stephen P & Lampe Ryan, 2004. "Patent Renewal Fees and Self-Funding Patent Offices," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-15, July.
- Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer, vol. 28(1), pages 41-62, 02.
- Crampes, Claude & Langinier, Corinne, 2000.
"Information Disclosure in the Renewal of Patents,"
Staff General Research Papers
10461, Iowa State University, Department of Economics.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008.
"On the price elasticity of demand for patents,"
Working Papers CEB
08-031.RS, ULB -- Universite Libre de Bruxelles.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "On the Price Elasticity of Demand for Patents," Working Papers ECARES 2008_031, ULB -- Universite Libre de Bruxelles.
- de Rassenfosse, Gaétan & van Pottelsberghe, Bruno, 2008. "On the price elasticity of demand for patents," CEPR Discussion Papers 7029, C.E.P.R. Discussion Papers.
- Patrick Bolton & Christopher Harris, 1999. "Strategic Experimentation," Econometrica, Econometric Society, vol. 67(2), pages 349-374, March.
- Kelly, David L. & Kolstad, Charles D., 1999. "Bayesian learning, growth, and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 23(4), pages 491-518, February.
- Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
- Giuseppe Moscarini & Lones Smith, 2001. "The Optimal Level of Experimentation," Econometrica, Econometric Society, vol. 69(6), pages 1629-1644, November.
- de Rassenfosse, Gaétan & van Pottelsberghe de la Potterie, Bruno, 2010.
"The role of fees in patent systems: Theory and evidence,"
CEPR Discussion Papers
7879, C.E.P.R. Discussion Papers.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2010. "The Role of Fees in Patent Systems: Theory and Evidence," Working Papers ECARES ECARES 2010-023, ULB -- Universite Libre de Bruxelles.
- Rudyk, Ilja, 2013. "Deferred Patent Examination," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 416, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Danguy Jérôme & van Pottelsberghe de la Potterie Bruno, 2011.
"Cost-Benefit Analysis of the Community Patent,"
Journal of Benefit-Cost Analysis,
De Gruyter, vol. 2(2), pages 1-43, April.
- Jérôme Danguy & Bruno Van Pottelsberghe, 2011. "Cost-Benefit Analysis of the Community Patent," ULB Institutional Repository 2013/101071, ULB -- Universite Libre de Bruxelles.
- Bruno van Pottelsberghe & JÃ©rÃ´me Danguy, 2009. "Cost Benefit Analysis of the Community Patent," Working Papers 366, Bruegel.
- Danguy, Jérôme & van Pottelsberghe de la Potterie, Bruno, 2010. "Cost-Benefit Analysis of the Community Patent," CEPR Discussion Papers 7631, C.E.P.R. Discussion Papers.
- Rudyk, Ilja, 2012. "The License of Right, Compulsory Licensing and the Value of Exclusivity," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 415, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.