The stationary bandit model of intellectual property

Davidson, S and Potts, J 2017, 'The stationary bandit model of intellectual property', Cato Journal, vol. 37, no. 1, pp. 69-88.


Document type: Journal Article
Collection: Journal Articles

Title The stationary bandit model of intellectual property
Author(s) Davidson, S
Potts, J
Year 2017
Journal name Cato Journal
Volume number 37
Issue number 1
Start page 69
End page 88
Total pages 20
Publisher Cato Institute
Abstract We propose a new model of intellectual property that presents a different view than the market failure/monopoly rent model advanced by Arrow (1962), in which governments protect inventors from private theft. Instead, using Olson (1993), we represent a public theft model of intellectual property arising when entrepreneurs acting in global markets seek protection from a stationary bandit (their home government) principally against the depredations of other governments (the roving bandits). This model explains why institutional quality matters to the global location of R&D intensive industries, such as biopharma, and why so much intellectual property is located in tax havens.
Subject Public Economics- Public Choice
Keyword(s) Intellectual Property
Innovation
Stationary Bandit
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ISSN 0273-3072
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Created: Thu, 23 Feb 2017, 10:59:00 EST by Catalyst Administrator
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