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Intellectual Property as a Carrot for Innovators Using Game Theory to Show the Limits of the Argument

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  • Dorothee Schmidt

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    (Max Planck Institute for Research on Collective Goods, Bonn)

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    Abstract

    One possible solution to mitigate the negative influences of conflict which has been proposed in the literature is to subject the relevant parties to education. Education can take two forms: increasing an individual's human capital on the one hand, increasing her social capital on the other hand. Using a stylized model of a two-individual economy, we derive that increasing an individual's social capital will lead her to reduce her conflict effort, whereas increasing her human capital can induce her to increase her conflict effort. We then analyze which conditions need to be present to induce the individuals to invest into their social capital.

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    File URL: http://www.coll.mpg.de/pdf_dat/2007_05online.pdf
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    Bibliographic Info

    Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2007_5.

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    Length: 24 pages
    Date of creation: Mar 2007
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    Handle: RePEc:mpg:wpaper:2007_5

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    Keywords: Contests; conflict reduction; education; human capital; social capital; morality;

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