Waiting to imitate: on the dynamic pricing of knowledge

Carlos Ponce ()
Authors registered in the RePEc Author Service: Emeric Henry

No 7511, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the problem of an inventor who brings to the market an innovation that can be legally copied. Imitators may 'enter' the market by copying the innovation at a cost or by buying from the inventor the knowledge necessary to reproduce and use the invention. The possibility of contracting affects the need for patent protection. Our results reveal that: (i) Imitators wait to enter the market and the inventor becomes a temporary monopolist; (ii) The inventor offers contracts which allow resale of the knowledge acquired by the imitators; (iii) As the pool of potential imitators grows large, the inventor may become a permanent monopolist.

Keywords: Contracting; Knowledge trading; Patents; War of attrition (search for similar items in EconPapers)
JEL-codes: C73 D23 L24 O31 O34 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-com, nep-ino, nep-ipr, nep-pr~, nep-knm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Waiting to Imitate: On the Dynamic Pricing of Knowledge (2011)
Working Paper: Waiting to Imitate: On the Dynamic Pricing of Knowledge (2011)
Working Paper: Waiting to Imitate: On the Dynamic Pricing of Knowledge (2011)
Working Paper: Waiting to Imitate: On the Dynamic Pricing of Knowledge (2011)
Working Paper: Waiting to imitate: on the dynamic pricing of knowledge (2009)
Working Paper: Waiting to imitate: on the dynamic pricing of knowledge (2009)
Working Paper: Waiting to imitate: on the dynamic pricing of knowledge (2009)
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