Patent races optimal with respect to entry

B-Tier
Journal: International Journal of Industrial Organization
Year: 1991
Volume: 9
Issue: 2
Pages: 197-207

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce a patent (prize) which induces entry at a level which satisfies the basic condition of optimality with respect to the 'size' of the race (a second best patent). We observe that for the Lee-Wilde model of a patent race the second best prize induces approximately the socially optimal (first best) outcome. The approach of the second best patent provides one explanation for why discoverers should only receive a fraction of the ex post social value of their discovery.

Technical Details

RePEc Handle
repec:eee:indorg:v:9:y:1991:i:2:p:197-207
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25