Lambertini, Luca ; Tedeschi, Pietro
(2000)
On the Social Desirability of Patents for Sequential Innovations in a Vertically Differentiated Market.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 21.
DOI 10.6092/unibo/amsacta/4933.
In: Quaderni - Working Paper DSE
(376).
ISSN 2282-6483.
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Abstract
We consider a market for vertically differentiated goods where firms enter over time, after having developed innovations characterized by different quality levels. We show that the adaptation of a patent system limiting the quality range available to later entrants is socially undesirable, in that it builds a barrier to entry to the advantage of the first innovators.
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