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To B or Not To B: A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model

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  • Danyang Xie

Abstract

This paper studies the welfare consequences of a government regulation that forces a patented equipment to be supplied by a number of independent producers. On the one hand, such a regulation hurts the value of a patent and therefore reduces activities in the R&D sector. On the other hand, the enhanced competition for the equipment improves efficiency in the manufacturing sector. Should monopolies protected by intellectual property rights be broken up? The answer is "no" in a Romer-type growth model, but there is sufficient reason to believe that the answer could be "yes" in a model advocated by Jones (1995).

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File URL: http://128.118.178.162/eps/ge/papers/0207/0207002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series GE, Growth, Math methods with number 0207002.

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Length: 17 pages
Date of creation: 21 Aug 2002
Date of revision:
Handle: RePEc:wpa:wuwpge:0207002

Note: Type of Document - Acrobat PDF; prepared on PC; to print on HP; pages: 17; figures: none
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Web page: http://128.118.178.162

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Keywords: R&D; Endogenous Growth; Competition Policy;

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