A Bayesian Real Option Approach to Patents and Optimal Renewal Fees
This article aims at estimating the optimal profile of renewal fees patent offices should implement. It is at the crossroad of two strands of literature. The first strand is the theoretical literature analysing renewal fees as an optimal revelation mechanism. The second strand is the econometric literature developing real option models of patent renewal decisions to assess the value of patents. Using data from the French patent office, we find that there is little room to lower the social cost of patents without affecting the monetary incentives to apply for a patent and innovate. We show that a menu of optimally defined profiles helps to further discriminate among patents.
|Date of creation:||23 Sep 2009|
|Date of revision:|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00419330/en/|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marc Baudry & Béatrice Dumont, 2006.
"Patent renewals as options : improving the mechanism for weeding out lousy patents,"
- Marc Baudry & Béatrice Dumont, 2006. "Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents," Review of Industrial Organization, Springer, vol. 28(1), pages 41-62, 02.
- Cox, John C. & Ross, Stephen A. & Rubinstein, Mark, 1979. "Option pricing: A simplified approach," Journal of Financial Economics, Elsevier, vol. 7(3), pages 229-263, September.
- Bosworth, D L, 1978. "The Rate of Obsolescence of Technical Knowledge-A Note," Journal of Industrial Economics, Wiley Blackwell, vol. 26(3), pages 273-79, March.
- Patrick Bolton & Christopher Harris, 1999. "Strategic Experimentation," Econometrica, Econometric Society, vol. 67(2), pages 349-374, March.
- de Rassenfosse, Gaétan & van Pottelsberghe de la Potterie, Bruno, 2008.
"On the price elasticity of demand for patents,"
CEPR Discussion Papers
7029, C.E.P.R. Discussion Papers.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "On the price elasticity of demand for patents," Working Papers CEB 08-031.RS, ULB -- Universite Libre de Bruxelles.
- Gaétan de Rassenfosse & Bruno Van Pottelsberghe, 2008. "On the Price Elasticity of Demand for Patents," Working Papers ECARES 2008_031, ULB -- Universite Libre de Bruxelles.
- Claude CRAMPES & Corinne LANGINIER, 1998.
"Information Disclosure in the REnewal of Patent,"
Annales d'Economie et de Statistique,
ENSAE, issue 49-50, pages 265-288.
- Crampes, C. & Langinier, C., 1996. "Information Disclosure in the Renewal of Patents," Papers 96.429, Toulouse - GREMAQ.
- Crampes, Claude & Langinier, Corinne, 2000. "Information Disclosure in the Renewal of Patents," Staff General Research Papers 10461, Iowa State University, Department of Economics.
- Gans Joshua S & King Stephen P & Lampe Ryan, 2004. "Patent Renewal Fees and Self-Funding Patent Offices," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-15, July.
- Kelly, David L. & Kolstad, Charles D., 1999. "Bayesian learning, growth, and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 23(4), pages 491-518, February.
- Giuseppe Moscarini & Lones Smith, 2001. "The Optimal Level of Experimentation," Econometrica, Econometric Society, vol. 69(6), pages 1629-1644, November.
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00419330. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.