Patent Buyouts: A Mechanism for Encouraging Innovation

S-Tier
Journal: Quarterly Journal of Economics
Year: 1998
Volume: 113
Issue: 4
Pages: 1137-1167

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

In 1839 the French government purchased the Daguerreotype patent and placed it in the public domain. Such patent buyouts could potentially eliminate the monopoly price distortions and incentives for rent-stealing duplicative research created by patents, while increasing incentives for original research. Governments could offer to purchase patents at their estimated private value, as determined in an auction, times a markup equal to the typical ratio of inventions' social and private value. Most patents purchased would be placed in the public domain, but to induce bidders to reveal their valuations, a few would be sold to the highest bidder.

Technical Details

RePEc Handle
repec:oup:qjecon:v:113:y:1998:i:4:p:1137-1167.
Journal Field
General
Author Count
1
Added to Database
2026-01-25