We focus on downstream uses that combine multiple intellectual property rights and examine the effects of introducing an intellectual property clearinghouse that reduces transaction costs associated with licensing. We show that this causes equilibrium royalties to rise in some cases and may harm...

This paper reviews and compares patent pools and intellectual property clearinghouses as alternative systems for increasing the efficiency of access to intellectual property. These systems improve economic efficiency in downstream research and development by economizing on search and transaction...

This paper develops a model of simple 'reputation systems' that monitor and publish information about the behavior of sellers in a market with search frictions and asymmetric information. The reputations created by these systems influence the equilibrium search patterns of buyers and thus...

This paper investigates conditions that generate the so-called "waterbed" effect under price regulation. This is the effect whereby regulation of one price of a multiproduct firm causes one or more of its unregulated prices to change as a result of the firm's profit-maximizing behavior. A...

Reputation systems have emerged as important sources of information in modern economies. This paper develops a model of reputation systems that puts buyers and sellers inside a stochastic environment involving asymmetric information and search frictions, and gives them a set of options with...

We consider patent pool formation by owners of essential patents for differentiated standards that may be complements or substitutes in use. Pooling improves coordination in terms of royalty setting within a standard but provokes a strategic response from licensors in the competing standard. We...

The International Handbook on Teaching and Learning Economics provides a comprehensive resource for instructors and researchers in economics, both new and experienced. This wide-ranging collection is designed to enhance student learning by helping economic educators learn more about course...

We examine the effects of third-party clearinghouses that license intellectual property on behalf of inventors when downstream uses of IP require licenses to multiple complementary innovations. We consider different simple clearinghouse royalty redistribution schemes, and different innovation...