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Evaluating the Economic Performance of Property Systems

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  • James Bessen

    () (Research on Innovation, Boston University School of Law)

Abstract

How should the economic performance of property systems be evaluated? Benefit-cost analysis is widely used to evaluate non-market based regulation when prices are not available. Market prices provide better information for property systems, but market prices are not necessarily socially optimal when property rights are imperfect. This paper discusses two practical approaches to evaluating the performance of property systems, one based on an analysis of institutional performance, the other based on measuring incentives. As an illustration, I show how these approaches might be used to evaluate the US patent system.

Suggested Citation

  • James Bessen, 2009. "Evaluating the Economic Performance of Property Systems," Working Papers 0902, Research on Innovation.
  • Handle: RePEc:roi:wpaper:0902
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    References listed on IDEAS

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    Cited by:

    1. James Bessen, 2010. "Communicating Technical Knowledge," Working Papers 1001, Research on Innovation.

    More about this item

    Keywords

    property; markets; externalities; regulation;

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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