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Regional exhaustion of intellectual property

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  • Kamal Saggi

Abstract

type="main" xml:lang="en"> This paper analyzes the causes and consequences of regional exhaustion of intellectual property, a discriminatory policy under which a set of countries permit parallel imports from one another but not from the rest of the world. A three-country model is developed in which two high-income countries jointly choose their common exhaustion policy among national (NE), international (IE), or regional exhaustion (RE). The two high-income countries implement RE when they are similar to each other and sufficiently high-income relative to the third country. Restricting their choice set to only non-discriminatory exhaustion policies (i.e., NE and IE) makes all countries worse off.

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  • Kamal Saggi, 2014. "Regional exhaustion of intellectual property," International Journal of Economic Theory, The International Society for Economic Theory, vol. 10(1), pages 125-137, March.
    • Handle: RePEc:bla:ijethy:v:10:y:2014:i:1:p:125-137
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    Cited by:

    1. Olena Ivus & Edwin L.‐C. Lai & Ted Sichelman, 2020. "An economic model of patent exhaustion," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 816-833, October.
    2. Kamal Saggi, 2016. "Trade, Intellectual Property Rights, and the World Trade Organization," Vanderbilt University Department of Economics Working Papers 16-00014, Vanderbilt University Department of Economics.

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    JEL classification:

    • F1 - International Economics - - Trade

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