The Welfare Implications of Unauthorized Reproduction of Intellectual Property in the Presence of Demand Network Externalities

1994 ◽  
Vol 42 (2) ◽  
pp. 155 ◽  
Author(s):  
Lisa N. Takeyama
2012 ◽  
Vol 6 (1) ◽  
Author(s):  
W. Parker Wheatley

Abstract This experiment helps students to understand the importance of network externalities in technology adoption and the evolution of industries. Students observe the roles of lock-in and critical mass in technology adoption, understand how pricing affects adoption, and see welfare implications of network externalities. Given examples of network effects in firm and government action (e.g., the advanced television systems committee, antitrust litigation for the credit/debit card industry, and private strategy in newer DVD technologies (HD DVD vs. Blue-Ray)), this experiment fits courses that wish to illustrate these ideas and provides a starting point for a more detailed study of network externalities


2012 ◽  
Vol 03 (01) ◽  
pp. 1240005 ◽  
Author(s):  
LEWIS S. DAVIS ◽  
FUAT ŞENER

We consider intellectual property rights (IPRs) in a Schumpeterian growth model in which patent holders face the threats of profit loss due to imitation and complete valuation loss due to outside innovation. We disaggregate IPR policies by distinguishing between the quality of the IPR regime and the intensity of IPR enforcement. An increase in the quality of the IPR regime unambiguously promotes growth. However, the relationship between IPR enforcement intensity and growth follows an inverted U-shaped curve. The growth-maximizing intensity of IPR enforcement is decreasing in institutional quality. We also investigate the model's welfare implications and examine the economy under a no-growth equilibrium.


Author(s):  
Mark J. Davison ◽  
Ann L. Monotti ◽  
Leanne Wiseman

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