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Intellectual property and market size

Author

Listed:
  • Michele Boldrin
  • David K. Levine

Abstract

Intellectual property protection involves a trade-off between the undesirability of monopoly and the desirable encouragement of creation and innovation. As the scale of the market increases, due either to economic and population growth or to the expansion of trade through treaties such as the World Trade Organization, this trade-off changes. We show that, generally speaking, the socially optimal amount of protection decreases as the scale of the market increases. We also provide simple empirical estimates of how much it should decrease.

Suggested Citation

  • Michele Boldrin & David K. Levine, 2005. "Intellectual property and market size," Staff Report 360, Federal Reserve Bank of Minneapolis.
  • Handle: RePEc:fip:fedmsr:360
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    References listed on IDEAS

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    Cited by:

    1. Michele Boldrin & David K Levine, 2004. "The Economics of Ideas and Intellectual Property," Levine's Working Paper Archive 122247000000000631, David K. Levine.
    2. Max Gillman & Mark N Harris & Michal Kejak, 2007. "The Interaction of Inflation and Financial Development with Endogenous Growth," Money Macro and Finance (MMF) Research Group Conference 2006 29, Money Macro and Finance Research Group.
    3. Juan Montoro Pons & Manuel Cuadrado García, 2008. "Legal origin and intellectual property rights: an empirical study in the prerecorded music sector," European Journal of Law and Economics, Springer, vol. 26(2), pages 153-173, October.

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    Keywords

    Intellectual property ; International trade;

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