Economic Analysis of Patents
In the first part of this chapter, we will review the underlying economic theory as to patent protection and R&D incentives. More specifically, we will focus on patent races, the deadweight loss on monopolistic markets associated with patents, and the tragedy of the anticommons. In particular, we will contribute to the formal literature on the tragedy of the anticommons by generalizing the model originally formulated by Schulz et al. (2002).
KeywordsNash Equilibrium Price Discrimination Deadweight Loss Pharmaceutical Firm Trips Agreement
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