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Markets For Partially Contractible Knowledge: Bootstrapping Versus Bundling

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Author Info
James J. Anton (Duke University,)
Dennis A. Yao (Harvard University and University of Pennsylvania,)

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Abstract

We discuss how a seller can appropriate rents when selling knowledge that lacks legal property rights by solving either an expropriation or a valuation problem and then analyze how seller rents increase when a portion of the intellectual property (IP) can be protected. The analysis shows that a sequential strategy in which the protected portion of the IP is sold prior to selling the unprotected IP is superior to selling both portions of the IP as a bundle. (JEL: D23, L14, O31) Copyright (c) 2005 The European Economic Association.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/jeea.2005.3.2-3.745
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Publisher Info
Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 3 (2005)
Issue (Month): 2-3 (04/05)
Pages: 745-754
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Handle: RePEc:tpr:jeurec:v:3:y:2005:i:2-3:p:745-754

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