Econometrica: May 1985, Volume 53, Issue 3
On the Performance of Patents
https://doi.org/0012-9682(198505)53:3<567:OTPOP>2.0.CO;2-0
p.
567-586
Kenneth L. Judd
A tractable dynamic general equilibrium model of continuous product innovation is developed. Patents, or any imitation lag, of infinite duration may achieve too much, too little, or the socially optimum level of innovation. Most surprising, finite-life patents may induce undamped oscillations in innovation.Log In To View Full Content