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Full-Text Articles in Social and Behavioral Sciences
The Creativity Effect, Christopher Buccafusco, Christopher Jon Sprigman
The Creativity Effect, Christopher Buccafusco, Christopher Jon Sprigman
Faculty Scholarship
This Article reports the first experiment to demonstrate the existence of a valuation anomaly associated with the creation of new works. To date, a wealth of social science research has shown that the least amount of money that owners of goods are willing to accept to part with their possessions is often far greater than the amount that purchasers would be willing to pay to obtain them. This phenomenon, known as the endowment effect, may create substantial inefficiencies in many markets. Our experiment demonstrates the existence of a related "creativity effect." We show that creators of works value their creations …
Valuing Intellectual Property: An Experiment, Christopher Buccafusco, Christopher Sprigman
Valuing Intellectual Property: An Experiment, Christopher Buccafusco, Christopher Sprigman
Faculty Scholarship
In this article we report on the results of an experiment we performed to determine whether transactions in intellectual property (IP) are subject to the valuation anomalies commonly referred to as “endowment effects”. Traditional conceptions of the value of IP rely on assumptions about human rationality derived from classical economics. The law assumes that when people make decisions about buying, selling, and licensing IP they do so with fixed, context-independent preferences. Over the past several decades, this rational actor model of classical economics has come under attack by behavioral data showing that people do not always make strictly rational decisions. …