Denicolò, Vincenzo
(1995)
The Optimum Life of a Patent When the Timing of Innovations is Stochastic.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 43.
DOI 10.6092/unibo/amsacta/5101.
In: Quaderni - Working Paper DSE
(225).
ISSN 2282-6483.
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Abstract
This paper studies the optimal lifetime of a patent in a model where the timing of innovatons: is uncertain. We assume a Poisson discovery process with a linear hazard function and contractural R&D costs. The invention industry is modelled in three alternative ways: i) monopoly; ii) oligopoly with free entry; iii) perfect competition. Several comparative staties results are derived.
Abstract