Handbook of Game Theory and Industrial Organization, Volume II
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Handbook of Game Theory and Industrial Organization, Volume II

Applications

Edited by Luis C. Corchón and Marco A. Marini

This second volume of the Handbook includes original contribution by experts in the field. It provides up-to-date surveys of the most relevant applications of game theory to industrial organization. The book covers both classical as well as new IO topics such as mergers in markets with homogeneous and differentiated goods, leniency and coordinated effects in cartels and mergers, static and dynamic contests, consumer search and product safety, strategic delegation, platforms and network effects, auctions, environmental and resource economics, intellectual property, healthcare, corruption, experimental industrial organization and empirical models of R & D.
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Chapter 14: Intellectual property

Miguel González-Maestre

Abstract

In this survey, we discuss the current literature on intellectual property from a perspective that takes into account two main features of the evolution of modern economies: (i) the increasing level of complexity associated with the production and design of goods, and (ii) the rapid development of the new technologies of information and communication. To this end, our survey focuses mainly on the recent literature dealing with the role of those technological changes on the optimal design of patents and copyrights. The revision suggests that the substantial changes, observed in most Western economies, tending to reinforce intellectual property rights, do not seem to be strongly justified, nor theoretically or empirically, on the grounds of welfare, creative, or innovative incentives. Instead, alternative mechanisms based on rent-seeking or lobbying activities by copyright or patent holders appear to provide a more plausible explanation.

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