Optimal Diffusion of Innovated Durable Goods Subject to Technical Progress: the Rôle of Property Rights Régimes

Abstract

Barzel (1984) insightfully remarks that knowledge is a public good. So surely a competitive organization of an industry spinning off knowledge is a norm for collective ineptitude. It becomes necessary to devise techniques, e.g., clubs and other cooperative devices, enhancing the ability of generators of such externalities to capture resulting benefit (see Bittlingmayer, 1982, 1985 and Telser, 1978, 1982, 1984). And the relevance of the theory of patent-grants is obvious.

(March 1987).