Tabarrok, Alexander - In: Contributions in Economic Analysis & Policy 1 (2002) 1
Abstract According to the economic theory of patents, patents are needed so that pioneer firm have time to recoup their … recoup, sunk costs. Yet patents are not awarded on the basis of a firm's sunk costs. Patent law, in fact, ignores costs. The … disconnect between patent law and patent theory suggests either that modifying patent law so that it better fits with patent …