Weyl, E. Glen; Tirole, Jean - In: The Quarterly Journal of Economics 127 (2012) 4, pp. 1971-2003
What is the best way to reward innovation? While prizes avoid deadweight loss, intellectual property (IP) selects high social surplus projects. Optimal innovation policy thus trades off the ex ante screening benefit and the ex post distortion. It solves a multidimensional screening problem in...