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Fundamental Valuation Of Patents in Continuous Time: A Note

Author

Listed:
  • Akila Hariharan

    ((corresponding author) Madras School of Economics, Chennai, Tamil Nadu, India, 600025)

  • Megana Prabha

    (London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, United Kingdom)

  • Naveen Srinivasan

    (Madras School of Economics, Chennai, Tamil Nadu, India, 600025)

  • Srikanth Pai

    (Madras School of Economics, Chennai, Tamil Nadu, India, 600025)

Abstract

In this note, we show how to solve for the fundamental (or bubble-free) value of a patent in continuous time using two methods: the method of integrating factor and the Laplace transform. Not only do these methods deliver a solution, they also provide conditions for when the solution is unique.

Suggested Citation

  • Akila Hariharan & Megana Prabha & Naveen Srinivasan & Srikanth Pai, 2025. "Fundamental Valuation Of Patents in Continuous Time: A Note," Working Papers 2025-288, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2025-288
    as

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    References listed on IDEAS

    as
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    3. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-784, August.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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