search query: @author Waterson, M. / total: 18
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| Author: | Waterson, M. |
| Title: | The economics of product patents |
| Journal: | American Economic Review
1990 : SEP, VOL. 80:4, p. 860-869 |
| Index terms: | PRODUCTS PATENTS MARKETS ENTRY CONDITIONS SOCIAL WELFARE MARKET RESEARCH |
| Language: | eng |
| Abstract: | A model of product patents is developed in which the patent changes the nature of market entry behaviour rather than preventing entry entirely. The purpose is to re-examine the question what a patent does. The model incorporates three levels of action: the innovator's patenting decision, the potential entrant's location decision, and possible court action. The analysis demonstrates how the characteristics of the patents system and the enforcement framework can influence rivals' variety choices and thus market equilibrium. It also considers how the system can be adjusted to improve social welfare. After the model is set out and its positive predictions are developed, some social welfare points are shown. |
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