To B or Not To B: A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model
AbstractThis 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).
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 EconWPA in its series GE, Growth, Math methods with number 0207002.
Length: 17 pages
Date of creation: 21 Aug 2002
Date of revision:
Note: Type of Document - Acrobat PDF; prepared on PC; to print on HP; pages: 17; figures: none
Contact details of provider:
Web page: http://126.96.36.199
R&D; Endogenous Growth; Competition Policy;
Other versions of this item:
- Danyang Xie, 2000. "To "B" or not to "B": A Welfare Analysis of Breaking Up Monopolies in an Endogenous Growth Model," IMF Working Papers 00/189, International Monetary Fund.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-08-29 (All new papers)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.