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Patent races and pennant races: A new rationale for revenue sharing in sports leagues

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  • Miceli, Thomas J.

Abstract

This paper draws an analogy between patent races and pennant races. Both involve externalities: investments by individual firms (teams) produce spillover benefits, but they also precipitate a race to be first. In both contexts, the granting of partial rights to the winner balances these effects. In the case of inventions this takes the form of time-limited patents; in sports competition it takes the form of revenue sharing. This conclusion provides a justification for revenue sharing that differs from the usual claim that it promotes competitive balance.

Suggested Citation

  • Miceli, Thomas J., 2024. "Patent races and pennant races: A new rationale for revenue sharing in sports leagues," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523005141
    DOI: 10.1016/j.econlet.2023.111488
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    References listed on IDEAS

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    More about this item

    Keywords

    Patent race Pennant race; Revenue sharing;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Z20 - Other Special Topics - - Sports Economics - - - General

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