Patent pools are agreements by multiple patent owners to license some set of patents to third parties as a package; in recent years, several have formed in conjunction with emerging technological standards. A key distinction made by regulators – between patents which are essential to a standard...

We present a new approach to the estimation of production functions that allows for richer patterns of firm heterogeneity than can be accommodated under the proxy variable methods of and Olley/Pakes and Levinsohn/Petrin. In particular, we show that the economics of the firms static input choice...