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Full-Text Articles in Law
Solomon's Knot: How Law Can End The Poverty Of Nations, Robert D. Cooter, Hans-Bernd Schaefer
Solomon's Knot: How Law Can End The Poverty Of Nations, Robert D. Cooter, Hans-Bernd Schaefer
Robert Cooter
Sustained growth depends on innovation, whether it’s cutting-edge software from Silicon Valley, an improved assembly line in Sichuan, or a new export market for Swaziland’s leather. Developing a new idea requires money, which poses a problem of trust. The innovator must trust the investor with his idea and the investor must trust the innovator with her money. Robert Cooter and Hans-Bernd Schäfer call this problem the “double trust dilemma of development.” How nations confront it determines whether their economies grow or stagnate. Nowhere is this problem more acute than in poorer nations. Nations are relatively poor in the modern world …
Clearings And Thickets, Robert D. Cooter, Aaron Edlin
Clearings And Thickets, Robert D. Cooter, Aaron Edlin
Robert Cooter
Abstract: Intellectual property rights create temporary monopoly power for innovators. Monopoly pricing transfers wealth to the innovator from the innovations buyers -- consumers, producers, and other innovators. For innovations mostly used in consumption and production, the transfer from consumers and producers to innovators increases the profitability of innovating and causes more of it. The welfare gains from faster growth quickly overtake the temporary losses from monopoly’s dead weight loss. Thus intellectual property rights should be strong for innovations mostly used by consumers and producers. In contrast, for innovations mostly used by other innovators, the transfer of wealth from one innovator …