Staples and Office Depot: An Event-Probability Case Study

Antitrust, event study, horizontal merger, price effect, stock market, unilateral effects,

The Economics of Intellectual Property Protection for Software: The Proper Role for Copyright

This paper provides an economic analysis of the proper role of copyright protection for computer software. We begin by identifying key economic conditions in the software market. Besides its public good characteristics, software generates network externalities through increased sales of programs and through production of complementary hardware and software. Assignment of intellectual property rights should be limited to take full advantage of the efficiencies available in this market. First, we demonstrate that copyright protection of de facto standards should not be granted to the original developer of a software package. Next, we argue that software interface specifications also should not be copyrightable since it would permit extension of market power to complementary software and to later improvements. Finally, we favor reverse engineering for the purpose of achieving interoperability since it enables firms to efficiently design compatible programs and to guard against unwarranted abuse of copyright protection. We discuss recent case law consistent with these principles, including the "merger doctrine" that denies protection whenever a product is the (nearly) unique expression of uncopyrightable idea.

Maximizing present value: A model to explain why moderate response rates obtain on variable-interval schedules

In Phases 1 and 3, two Japanese monkeys responded on a multiple variable-ratio 80 variable-interval X schedule, where the value of X was adjusted to ensure equal between-schedule reinforcement rates. Components strictly alternated following the delivery of a food pellet, and each session ended following 50 components. Phase 2 differed from the others only in that the 50 pellets previously earned during the session were delivered together at session's end. Variable-ratio response rates did not decrease across phases, but variable-interval response rates decreased substantially during the Phase 2 procedure. This rate decrease was attributed to the food-at-session's-end manipulation removing the greater immediacy of reinforcement provided by short interresponse times relative to long interresponse times. Without this time preference for short interresponse times, the variable-interval interresponse-time reinforcement feedback function largely controlled response emission, dictating a response-rate reduction. This result was explained in terms of the economic notion of “maximizing present value.