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An auction model of intellectual property protection: Patent versus copyright

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UNSPECIFIED (2000) An auction model of intellectual property protection: Patent versus copyright. In: 10th International Conference of the Army-Data-Retrieval-Engineering-System, STRASBOURG, FRANCE, JUN 03-05, 1996. Published in: ECONOMICS AND ECONOMETRICS OF INNOVATION pp. 225-241.

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Abstract

In this paper several firms compete for the right to obtain intellectual property protection for a basic idea which has subsequent potential applications. The modelling employs an auction analogy, taking the context to be an n-player all-pay auction, with a reserve. We find that, even taking only firms' own utilities into account, welfare has no interior maximum, so that either maximal, or minimal, protection is optimal. Through examining a simple version of this game, we suggest that software is socially better protected by means of copyright rather than patent.

Item Type: Conference Item (UNSPECIFIED)
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: ECONOMICS AND ECONOMETRICS OF INNOVATION
Publisher: KLUWER ACADEMIC PUBLISHERS
ISBN: 0-7923-7800-8
Editor: Encaoua, D and Hall, BH and Laisney, F and Mairesse, J
Date: 2000
Number of Pages: 17
Page Range: pp. 225-241
Publication Status: Published
Title of Event: 10th International Conference of the Army-Data-Retrieval-Engineering-System
Location of Event: STRASBOURG, FRANCE
Date(s) of Event: JUN 03-05, 1996
URI: http://wrap.warwick.ac.uk/id/eprint/11413

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