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Intellectual Property And Marketing, Darius Noshir Lakdawalla, Tomas J. Philipson, Y. Richard Wang
Intellectual Property And Marketing, Darius Noshir Lakdawalla, Tomas J. Philipson, Y. Richard Wang
Darius N. Lakdawalla
Patent protection spurs innovation by raising the rewards for research, but it usually results in less desirable allocations after the innovation has been discovered. In effect, patents reward inventors with inefficient monopoly power. However, previous analysis of intellectual property has focused only on the costs patents impose by restricting price-competition. We analyze the potentially important but overlooked role played by competition on dimensions other than price. Compared to a patent monopoly, competitive firms may engage in inefficient levels of non-price competition-such as marketing-when these activities confer benefits on competitors. Patent monopolies may thus price less efficiently, but market more efficiently …
A Theory Of Health Disparities And Medical Technology, Darius Noshir Lakdawalla, Dana Goldman
A Theory Of Health Disparities And Medical Technology, Darius Noshir Lakdawalla, Dana Goldman
Darius N. Lakdawalla
Better-educated people are healthier, although the sources of this relationship remain unclear. Starting with basic principles of consumer theory, we develop a model of how health disparities are determined that does not depend on the precise causal mechanism. Improvements in the productivity of health care disproportionately benefit the heaviest health care users. Since richer patients tend to use the most health care, this suggests that new technologies—by making more diseases treatable, reducing the price of health care, or improving health care productivity—could widen socioeconomic disparities in health. An exception to this rule, however, is a simplifying technology, which can contract …
Social Insurance And The Design Of Innovation Incentives, Darius Noshir Lakdawalla, Neeraj Sood
Social Insurance And The Design Of Innovation Incentives, Darius Noshir Lakdawalla, Neeraj Sood
Darius N. Lakdawalla
We consider the insurance aspects of research policy. Patents or rewards have an advantage over research subsidies when a new invention replaces an existing good at lower cost. Research subsidies have an advantage when inventions spawn an entirely new product.