OptimalPatent Policy with Recurrent Innovators
AbstractWe study an optimal patent problem in the spirit of Hopenhayn, et al (2006), but where all innovations arise from two repeated innovators. Following Hopenhayn, et al (2006) we divide patent regimes into those that are exclusive, in the sense that only one firm ever has a claim on the current market, and non-exclusive regimes where both firms simultaneously have ongoing claims to market leadership at a given instant. We show that in the exclusive regime, the long run treatment of the firms depends crucially on the investment technology: when it has no fixed costs, no firm is ever excluded, but with fixed costs one firm is excluded in finite time. We characterize non-exclusive regimes numerically and show that they may or may not lead to monopolization in the long run.
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 Society for Economic Dynamics in its series 2010 Meeting Papers with number 1313.
Date of creation: 2010
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ufuk Akcigit & Qingmin Liu, 2011. "The Role of Information in Competitive Experimentation," NBER Working Papers 17602, National Bureau of Economic Research, Inc.
- Ufuk Akcigit & Qingmin Liu, 2011. "The Role of Information in Competitive Experimentation," Levine's Working Paper Archive 786969000000000321, David K. Levine.
- Ufuk Akcigit & Qingmin Liu, 2011. "The Role of Information in Competitive Experimentation," PIER Working Paper Archive 11-038, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Christian Riis & Xianwen Shi, 2012. "Sequential Innovation and Optimal Patent Design," Working Papers tecipa-447, University of Toronto, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.