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the social benefits of their innovations if innovation is to be suitably rewarded and encouraged. However, this paper … deadweight loss associated with the patent system and discourage innovation by others. Economic efficiency is promoted if rewards … the patent system designed to spur innovation by better aligning the rewards and contributions of patent holders …
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Keywords: patents, innovation, oligopoly JEL codes: L13, O31. ABSTRACT: Many inventions, great and small, are …
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This paper studies royalty negotiations between a patent holder and a downstream firm selling a product which is more valuable if it includes a feature covered by the patent. Royalties are negotiated in the shadow of patent litigation, which will determine whether or not the patent is valid and...
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