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Intellectual Property as a Carrot for Innovators Using Game Theory to Show the Limits of the Argument


  • Dorothee Schmidt

    () (Max Planck Institute for Research on Collective Goods, Bonn)


One possible solution to mitigate the negative influences of conflict which has been proposed in the literature is to subject the relevant parties to education. Education can take two forms: increasing an individual's human capital on the one hand, increasing her social capital on the other hand. Using a stylized model of a two-individual economy, we derive that increasing an individual's social capital will lead her to reduce her conflict effort, whereas increasing her human capital can induce her to increase her conflict effort. We then analyze which conditions need to be present to induce the individuals to invest into their social capital.

Suggested Citation

  • Dorothee Schmidt, 2007. "Intellectual Property as a Carrot for Innovators Using Game Theory to Show the Limits of the Argument," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2007_5, Max Planck Institute for Research on Collective Goods.
  • Handle: RePEc:mpg:wpaper:2007_5

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    Contests; conflict reduction; education; human capital; social capital; morality;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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