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24/7 competitive innovation

By Danny Quah

Abstract

Intellectual property (IP) rights differ from ordinary property rights. Historically, societies have tolerated monopolistic inefficiency from IP protection to incentivize intellectual asset creation. This paper considers how competitive markets can optimally allocate resources, bypassing that monopolistic inefficiency. It departs from earlier related work in three ways: First, it allows economic actions undertaken progressively rapidly as technology advances. Second, it weakens property rights yet further, allowing both consumers and asset holders to make and sell copies. Third, it distinguishes nonrivalry from infinite reproduction. The first departure restores the traditional view that competitive markets fail. The second and third, surprisingly, have competitive markets achieve social efficiency

Topics: HB Economic Theory, K Law (General), T Technology (General)
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 2002
OAI identifier: oai:eprints.lse.ac.uk:2021
Provided by: LSE Research Online
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