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Matching Demand and Supply in a Weightless Economy: Market-driven Creativity With and Without IPRs

Overview Many cultural products have the same nonrival nature as scientific knowledge. They therefore face identical difficulties in creation and dissemination. One traditional view says market failure is endemic: Societies tolerate monopolistic inefficiency in intellectual property (IP) protection to incentivize the creation and distribution of intellectual assets. This paper examines that tradeoff in dynamic, representative agent general equilibrium, and characterizes socially efficient creativity. Markets for intellectual assets protected by IP rights can produce too much or too little innovation.

Further White Paper Details
Publisher	LSE Economics Department	File Format	PDF, requires Acrobat Rdr 5
Date Published	March 2002	Downloads	110
Format	White Papers
Topics	Economic Modeling

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