IDEAS home Printed from https://ideas.repec.org/a/ipn/panora/vvy2009i09p7-54.html
   My bibliography  Save this article

Who Wants To Be a Genius?

Author

Listed:
  • Fujii, Dmitri

    (Colegio Mexiquense.)

Abstract

En este artículo desarrollamos un modelo teórico para una economía dual, en la que los dos tipos de individuos (empresas) escogen entre convertirse en inventores y copiar las ideas desarrolladas por otros. Se analiza un caso específico: algunos individuos son genios y todos los genios se vuelven inventores mientras los individuos ordinarios se convierten en piratas. El modelo está basado en un trabajo previo de Grossman (2005), pero incluye dos nuevas aspectos, una etapa previa en la que los individuos toman la decisión de convertirse en genios (mediante un pago fijo) y un análisis de bienestar para la economía. La principal conclusión del artículo es que, a pesar de que una mayor proporción de genios en la economía representa un mayor bienestar, las políticas implementadas por las autoridades (en el caso de los derechos de propiedad, entre otros instrumentos) para crear incentivos que incremen esta proporción, depende de las condiciones iniciales de la economía (en términos de la proporción de genios). / In this paper we present a theoretical model of a dual economy, in which the two groups of individuals (firms) choose between becoming inventors and copying other individuals’ ideas. A particular case, in which some individuals are geniuses and all geniuses become inventors while all ordinary people become pirates, is analyzed. The model is based on Grossman (2005), but considers two main changes: a previous stage is revised (in which there is a fixed cost of becoming a genius) and a wealth analysis for the economy is presented. The main conclusion of the paper is that even when a higher proportion of geniuses represent a higher welfare for the society, the policy implemented by the authorities (in terms of intellectual property rights, among other instruments) to create incentives for such an increase depends on the initial conditions of the economy (in terms of the proportion of geniuses itself).

Suggested Citation

  • Fujii, Dmitri, 2009. "Who Wants To Be a Genius?," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 0(09), pages 7-54, segundo s.
    • Handle: RePEc:ipn:panora:v:v:y:2009:i:09:p:7-54
    as

    Download full text from publisher

    File URL: http://yuss.me/revistas/panorama/pano2009v05n09a01p007_054.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard Schmalensee, 2000. "Antitrust Issues in Schumpeterian Industries," American Economic Review, American Economic Association, vol. 90(2), pages 192-196, May.
    2. Cozzi, Guido, 2001. "Inventing or Spying? Implications for Growth," Journal of Economic Growth, Springer, vol. 6(1), pages 55-77, March.
    3. Herschel I. Grossman & Minseong Kim, 2002. "Predation, Efficiency, and Inequality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(3), pages 393-407, September.
    4. Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
    5. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    6. repec:bla:jindec:v:47:y:1999:i:2:p:169-94 is not listed on IDEAS
    7. Herschel I. Grossman & Minseong Kim, 2003. "Educational Policy: Egalitarian or Elitist?," Economics and Politics, Wiley Blackwell, vol. 15(3), pages 225-246, November.
    8. Casar, José I., 1993. "La competitividad de la industria manufacturera mexicana. 1980-1990," El Trimestre Económico, Fondo de Cultura Económica, vol. 60(237), pages 113-183, enero-mar.
    9. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    10. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    11. Grossman, Herschel I., 2005. "Inventors and pirates: creative activity and intellectual property rights," European Journal of Political Economy, Elsevier, vol. 21(2), pages 269-285, June.
    12. Luis E. Arjona & Kurt Unger, 1996. "Competitividad internacional y desarrollo tecnológico: la industria manufacturera mexicana frente a la apertura comercial," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 187-220, July-Dece.
    13. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bang, Se Hoon & Kim, Jae Soo, 2016. "Conflict in the Shadow of Conflict," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 38(4), pages 95-114.
    2. Arrunada, Benito & Paz-Ares, Candido, 1997. "Mandatory rotation of company auditors: A critical examination," International Review of Law and Economics, Elsevier, vol. 17(1), pages 31-61, March.
    3. Grossman, Herschel I., 2005. "Inventors and pirates: creative activity and intellectual property rights," European Journal of Political Economy, Elsevier, vol. 21(2), pages 269-285, June.
    4. Kolmar, Martin, 2005. "The contribution of Herschel I. Grossman to political economy," European Journal of Political Economy, Elsevier, vol. 21(4), pages 802-814, December.
    5. Bouckaert, Jan & Degryse, Hans & Provoost, Thomas, 2010. "Enhancing market power by reducing switching costs," Economics Letters, Elsevier, vol. 109(2), pages 131-133, November.
    6. Mejia, Daniel & Posada, Carlos-Esteban, 2007. "Populist policies in the transition to democracy," European Journal of Political Economy, Elsevier, vol. 23(4), pages 932-953, December.
    7. Jean-Bernard Chatelain, 1999. "Taux de marge et structure financière," Annals of Economics and Statistics, GENES, issue 53, pages 127-147.
    8. Chakravarthi Narasimhan & Z. John Zhang, 2000. "Market Entry Strategy Under Firm Heterogeneity and Asymmetric Payoffs," Marketing Science, INFORMS, vol. 19(4), pages 313-327, November.
    9. Nils‐Petter Lagerlöf & Thomas Tangerås, 2008. "From rent seeking to human capital: a model where resource shocks cause transitions from stagnation to growth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(3), pages 760-780, August.
    10. Langus, Gregor & Lipatov, Vilen, 2008. "On Quantity Competition With Switching Costs," MPRA Paper 15457, University Library of Munich, Germany.
    11. E. Avenel, 2008. "Strategic Vertical Integration Without Foreclosure," Journal of Industrial Economics, Wiley Blackwell, vol. 56(2), pages 247-262, June.
    12. Christiaan Behrens & Nathalie McCaughey, 2015. "Loyalty Programs and Consumer Behaviour: The Impact of FFPs on Consumer Surplus," Tinbergen Institute Discussion Papers 15-048/VIII, Tinbergen Institute.
    13. Gayle, Philip G. & Wu, Chi-Yin, 2013. "A re-examination of incumbents’ response to the threat of entry: Evidence from the airline industry," Economics of Transportation, Elsevier, vol. 2(4), pages 119-130.
    14. Pascal Michaillat & Emmanuel Saez, 2015. "Aggregate Demand, Idle Time, and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 507-569.
    15. Ramani, Vinay & De Giovanni, Pietro, 2017. "A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1009-1027.
    16. Laussel, Didier & Resende, Joana, 2014. "Dynamic price competition in aftermarkets with network effects," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 106-118.
    17. Walter Beckert & Paolo Siciliani, 2018. "Protecting Vulnerable Consumers in "Switching Markets"," Birkbeck Working Papers in Economics and Finance 1808, Birkbeck, Department of Economics, Mathematics & Statistics.
    18. Kemnitz Alexander, 2013. "A Simple Model of Health Insurance Competition," German Economic Review, De Gruyter, vol. 14(4), pages 432-448, December.
    19. Ning, Yu & Xu, Su Xiu & Yan, Mian & Huang, George Q., 2018. "Digital pricing with piracy and variety seeking," International Journal of Production Economics, Elsevier, vol. 206(C), pages 184-195.
    20. Rafael R. Guthmann, 2024. "Price dispersion in dynamic competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 78(4), pages 1203-1232, December.

    More about this item

    Keywords

    Economía dual; agentes económicos; condiciones iniciales; derechos de propiedad; bienestar / Dual economy; economic agents; initial conditions; property rights; welfare.;
    All these keywords.

    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
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipn:panora:v:v:y:2009:i:09:p:7-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Juan Marroquín-Arreola (email available below). General contact details of provider: https://edirc.repec.org/data/eeipnmx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.