EconPapers    
Economics at your fingertips  
 

Patent protection under endogenous product differentiation

Arijit Mukherjee

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: It is generally believed that a weak patent protection makes the consumers and the society better off compared to a strong patent protection by increasing the intensity of competition if the weak patent protection does not affect innovation. We show that this conclusion may not hold if the innovator can take other non-production strategies, such as product differentiation, to reduce the intensity of product-market competition. A weak patent protection may reduce consumer surplus and social welfare by inducing product differentiation by the innovator. We show that the type of product-market competition and the market demand function play important roles in this respect. Hence, there can be an argument for a strong patent protection even if it does not affect innovation.

Keywords: Patent protection; Product differentiation; Welfare (search for similar items in EconPapers)
JEL-codes: D21 D43 L13 O34 (search for similar items in EconPapers)
Date: 2013-07, Revised 2013-07
New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-ipr, nep-pr~ and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.lboro.ac.uk/departments/sbe/RePEc/lbo/lbowps/Wp_2013-06.pdf

Related works:
Journal Article: Patent protection under endogenous product differentiation (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lbo:lbowps:2013_06

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, Loughborough University Contact information at EDIRC.
Bibliographic data for series maintained by Huw Edwards ().

 
Page updated 2024-02-27
Handle: RePEc:lbo:lbowps:2013_06