A patent protects an innovator only from others who produce the same product, but it does not protect him from others who produce better products under new patents. Previous work has emphasized that intellectual property regulations stimulate research and development by protecting innovative...

Although the not-for-profit sector contributes greatly to aggregate output in many industries, there has been little explicit analysis of the economic consequences of applying antitrust policy in this sector. Despite the differences between for-profit and nonprofit firms stressed in conventional...

The joint presence of technological change and consumption externalities is central to health care industries around the world, because medical innovation drives the expansion of the health care sector and altruism seems to motivate many public subsidies. Although traditional economic analysis...

Standard analysis of intellectual property focuses on the balance between incentives for research and the welfare costs of restraining output through monopoly pricing. We present evidence from the pharmaceutical industry that output often fails to rise after patent expirations. Patents restrict...