IMES DISCUSSION PAPER SERIES

Markets for Information Goods

Hal R. VARIAN

Discussion Paper No. 99-E-9

INSTITUTE FOR MONETARY AND ECONOMIC STUDIES

BANK OF JAPAN

C.P.O BOX 203 TOKYO 100-8630 JAPAN NOTE: IMES Discussion Paper Series is circulated in order to stimulate discussion and comments. Views expressed in Discussion Paper Series are those of authors and do not necessarily reflect those of the Bank of Japan or the Institute for Monetary and Economic Studies. IMES Discussion Paper Series 99-E-9 May 1999

Markets for Information Goods

Hal R. VARIAN*

Abstract

Economic theory has argued that "information" poses serious difficulties for the proper functioning of neoclassical markets. However, real markets seem to deal with it rather well, since real markets are much more creative than those simple competitive markets studied in Econ. 1. Information is an experience good, exhibits returns to scale, and public good properties, and all of these would seem to cause difficulties for market transactions. However, each of these issues can be dealt with: (1) there are practices such as previewing, browsing, and reviewing, which overcome the experience good problem; (2) product differentiation and/or price discrimination help deal with the returns to scale problem; and (3) intellectual property laws allow information goods to be excludable. Because information overload is becoming a serious problem, we will have to seek creative solutions such as recommender systems and/or intermediaries for filtering information. There will be an increased demand for information management specialists.

Key words: Information good, Experience good, Returns to scale, Previewing, and browsing, excludability, intellectual property

JEL classification: D40, H40, L80

* University of California, Berkeley

gontents

I henition of inform—tion go o d I

P snform—tion —s —n e™onomi™ go o d I

Q snform—tion —s exp erien™e go o d P

QFI €reviewing —nd ˜rowsing XXXXXXXXXXXXXXXXXXXXX P

QFP ‚eviews XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX P

QFQ ‚eput—tion XXXXXXXXXXXXXXXXXXXXXXXXXXXX Q

R ‚eturns to s™—le Q

S snform—tion —s — pu˜li™ go o d R

SFI i™onomi™s of intelle™tu—l prop erty XXXXXXXXXXXXXXXX S

SFP ƒoftw—re p—tents XXXXXXXXXXXXXXXXXXXXXXXXX U

T yther w—ys to de—l with ex™lusion V

U „erms —nd ™onditions W

V €ir—™y W

W sntern—tion—l ™on™erns W

WFI ƒ —s ™opyright pir—te XXXXXXXXXXXXXXXXXXXXXX II

IH yverlo—d IP

II fusiness mo dels IR

IP snstitutions IT

wu™h h—s ˜ een written —˜ out the di™ulties th—t ’inform—tion4 p oses for

neo ™l—ssi™—l e™onomi™sF row ironi™ th—t sgi|inform—tionD ™ommuni™—tionD

—nd entert—inment|now ™omprises the l—rgest se™tor in the emeri™—n e™onE

omyF sf inform—tion p oses pro˜lems for e™onomi™ theoryD so mu™h the worse

for e™onomi™ theoryX re—l m—rkets seem to de—l with inform—tion r—ther wellF

„his p—r—dox is the ™entr—l theme of this ess—yX inform—tionD th—t slipE

p ery —nd str—nge e™onomi™ go o dD isD in f—™tD h—ndled very well ˜y m—rket

institutionsF „he re—son is th—t re—l m—rkets —re mu™h more ™re—tive th—n

those simple ™omp etitive m—rkets studied in i™on IF „he f—™t th—t re—lElife

m—rkets ™—n h—ndle — go o d —s pro˜lem—ti™ —s is — test—ment to the exi˜ility

—nd ro˜ustness of m—rket institutionsF

I henition of inform—tion go o d

vet us rst seek — gener—l ™h—r—™teriz—tion of the sgi e™onomyF „he ˜—si™

unit th—t is tr—ns—™ted is wh—t s ™—ll ’inform—tion go o dsF4 s t—ke this to

˜e —nything th—t ™—n ˜ e digitized|— ˜ o okD — movieD — re™ordD — telephone

™onvers—tionF xote ™—refully th—t the denition st—tes —nything th—t ™—n ˜e

digitizedY s don9t require th—t the inform—tion —™tu—l ly ˜ e digitizedF en—E

log represent—tionsD of inform—tion go o dsD su™h —s video t—p esD —re ™ommonD

though they will likely ˜ e™ome less so in the futureF

sn this ess—y s will not ˜ e very ™on™erned with —symmetri™ inform—tionF

„his topi™ h—s ˜ een de—lt with extensively in the liter—ture —nd s h—ve little

to —dd to the st—nd—rd tre—tmentsF snste—dD s w—nt to fo ™us on inform—tion

—s — go o d|—s —n o˜ je™t of e™onomi™ tr—ns—™tionsF

P snform—tion —s —n e™onomi™ go o d

snform—tion h—s three m—in prop erties th—t would seem to ™—use di™ulties

for m—rket tr—ns—™tionsF

ixp erien™e go o dF ‰ou must exp erien™e —n inform—tion go o d ˜ efore you

know wh—t it isF

‚eturns to s™—leF snform—tion typi™—lly h—s — high xed ™ost of pro du™tion

˜ut — low m—rgin—l ™ost of repro du™tionF I

€u˜li™ go o dsF snform—tion go o ds —re typi™—lly nonEriv—l —nd sometimes

nonex™lud—˜leF

‡e will de—l with these topi™s one —t — timeF

Q snform—tion —s exp erien™e go o d

‰ou ™—n only tell if you w—nt to ˜uy some inform—tion on™e you know wh—t

it is|˜ut ˜y then it is to o l—teF row ™—n one tr—ns—™t in go o ds th—t you

h—ve to give—w—y in order to show p eople wh—t they —rec „here —re sever—l

so ™i—l —nd e™onomi™ institutions th—t —re used to over™ome this pro˜lemF

QFI €reviewing —nd ˜rowsing

snform—tion pro du™ers typi™—lly oer opp ortunities for ˜rowsing their pro dE

u™tsX rollywo o d oers previewsD the musi™ industry oers r—dio ˜ro—d™—stsD

—nd the pu˜lishing industry oers ˜ o okstoresD now—d—ys ™omplete with e—sy

™h—irs —nd ™—ppu™inosF yne of the gre—t di™ulties f—™ed ˜y sellers of inforE

m—tion on the snternet is guring out w—ys to ˜rowse the pro du™tsF †ideo

—nd previews work wellD ˜ut it —pp e—rs th—t previewing textu—l inform—tion

would ˜ e quite di™ultF

roweverD things —re not quite —s ˜—d —s they seemF „he x—tion—l e™—demy

of ƒ™ien™es €ress found th—t when they p osted the full text of ˜ o ok on the

‡e˜D the s—les of those ˜ o oks wentup˜y — f—™tor of threeF €osting the m—E

teri—l on the ‡e˜ —llowed p otenti—l ™ustomers to preview the m—teri—lD ˜ut

—nyone who re—lly w—nted to re—d the ˜ o ok would downlo—d itF ws„ €ress

h—d — simil—r exp erien™e with monogr—phs —nd online journ—lsF

QFP ‚eviews

enother w—ytoover™ome the exp erien™e go o d pro˜lem is for some e™onomi™

—gents to sp e™i—lize in reviewing pro du™ts —nd providing these ev—lu—tions to

other p otenti—l ™onsumersF „his is esp e™i—lly ™ommon in the entert—inment

industryX lm reviewsD ˜ o ok reviewsD —nd musi™ reviewers —re u˜iquitousF

fut reviews —re —lso found in the purer sort of inform—tion go o dsF „he

most —™—demi™ p opul—r p—p ers @—s me—sured ˜y ™it—tionA —re typi™—lly surveys P

sin™e the sp e™i—liz—tion required for frontier work in the s™ien™es h—s ™re—ted

— dem—nd for su™hoverviewsF

€eer review is the st—nd—rd te™hnique used in the s™ien™es for ev—lu—ting

the merit of p—p ers su˜mitted for pu˜li™—tionD while most hum—nities use

—™—demi™ presses to provide — simil—r fun™tionF „his institution survives

˜ e™—use it meets —n imp ort—nt needX ev—lu—ting inform—tionF

QFQ ‚eput—tion

„he third w—y th—t pro du™ers of inform—tion go o ds over™ome the exp erien™e

go o d pro˜lem is vi— reput—tionF s —m willing to pur™h—se the ‡—l l ƒtreet

tourn—l to d—y ˜ e™—use s h—ve re—d it in the p—st —nd found it worthwhileF

„he tourn—l invests he—vily to est—˜lish —nd m—int—in its ˜r—nd identityFpor

ex—mpleD when it st—rted —n online editionD it went to gre—t lengths to ™re—te

the s—me ’lo ok —nd feel4 —s the print editionF „he intent w—s to ™—rry over

the reput—tion from the oEline edition to the online versionF

snvesting in ˜r—nd —nd reput—tion is st—nd—rd pr—™ti™e in the inform—tion

˜izD from the wqw vion to the „ime m—g—zine logoF „his investmentis

w—rr—nted ˜ e™—use of the exp erien™e go o d pro˜lem of inform—tionF

R ‚eturns to s™—le

snform—tion is ™ostly to pro du™e ˜ut ™he—p to repro du™eF st ™—n e—sily ™ost

over — hundred million doll—rs to pro du™e the rst gh of — rollywoo d lmD

while the se™ond gh ™—n ™ost well under — doll—rF „his ™ost stru™ture|high

xed ™osts —nd low m—rgin—l ™osts|™—use gre—t di™ulties for ™omp etitive

m—rketsF

st9s even worse th—t th—tF „he xed ™osts for inform—tion go o ds —re not

just xed|they —re —lso sunkF „h—t isD they typi™—lly must ˜ e in™urred prior

to pro du™tion —nd usu—lly —re not re™over—˜le in ™—se of f—ilureF sf the movie

˜ om˜sD there isn9t mu™h of — m—rket for its s™riptD no m—tter how mu™hit

™ost to pro du™eF

gomp etitive m—rkets tend to push pri™e to m—rgin—l ™ostD whi™hD in the

™—se of inform—tion go o dsD is ™lose to zeroF fut this le—ves no m—rgin to

re™over those huge xed ™ostsF row is it th—t inform—tion ™—n ˜ e sold —t —llc Q

„he o˜vious —nswer is th—t inform—tion is r—rely tr—ded on ™omp etitive

m—rketsF snste—dD inform—tion go o ds —re highly dierenti—tedF i—™h p op gh

is dierent th—n the others @or so the listeners thinkAD —nd e—™h movie is

uniqueF fut not too uniqueF „here is still —n —dv—nt—ge in en™our—ging some

simil—ritiesD due to the reput—tion ee™t des™ri˜ ed e—rlierF

„he m—rket stru™ture for most inform—tion go o ds is one of monop olisti™

™omp etitionF hue to pro du™t dierenti—tionD pro du™ers h—ve some m—rket

powerD ˜ut the l—™k of entry restri™tions tends to for™e prots to zero over

timeF

„he f—™t th—t inform—tion go o ds gener—lly h—ve some degree of m—rket

power —lso —llows pro du™ers to re™over xed ™osts through more ™re—tive

pri™ing —nd m—rketing —rr—ngementsF €ri™e dis™rimin—tion for inform—tion

is ™ommonX dierent groups of ™onsumers p—y dierent pri™esD —nd qu—lity

dis™rimin—tion is ™ommonpl—™eF

€u˜lishers rst issue — ˜ o ok in h—rd˜—™k —nd thenD — ye—r l—terD in p—p erE

˜—™kF pilm ™ome out rst for the—tersD then thenD T months l—terD on videosF

snvestors p—y one pri™e for re—l time sto ™k pri™es —nd —nother mu™h lower

pri™e for del—yed pri™esF sn e—™h of these ex—mplesD the sellers use del—y to

segment in the m—rket ˜y willingness to p—yF

„here —re m—ny other dimensions —long whi™h one ™—n ’version4 inform—E

tion go o dsF ƒh—piro —nd †—ri—n ‘IWWV“ des™ri˜ e sever—l of these dimensions

in™luding del—yD user interf—™eD ™onvenien™eD im—ge resolutionD form—tD ™—p—E

˜ilityD fe—turesD ™omprehensivenessD —nnoy—n™eD —nd supp ortF

S snform—tion —s — pu˜li™ go o d

e pure pu˜li™ go o d is ˜ oth nonriv—l —nd nonex™lud—˜leF xonriv—l me—ns th—t

one p erson9s ™onsumption do esn9t diminish the —mount —v—il—˜le to other

p eopleD while nonex™lud—˜le me—ns th—t one p erson ™—nnot ex™lude —nother

p erson from ™onsuming the go o d in questionF gl—ssi™ ex—mples of pure pu˜li™

go o ds —re go o ds like n—tion—l defenseD lighthousesD „† ˜ro—d™—stsD —nd so onF

„he two prop erties of — pu˜li™ go o d —re quite dierentF xonriv—lness is —

prop erty of the go o d itselfX the s—me —mount of defenseD lighthouse servi™es

—nd „† ˜ro—d™—sts —re —v—il—˜le to everyone in the region served ˜y the very

n—ture of the go o dF ix™lud—˜ility is — ˜it dierent sin™e it dep endsD —t le—st

in p—rtD on the leg—l regimeF por ex—mpleD „† ˜ro—d™—sts in ingl—nd —re R

supp orted ˜y — t—x on „†sY those who don9t p—y the t—x —re leg—l ly @˜ut not

te™hnologi™—llyA ex™luded from w—t™hing the ˜ro—d™—stsF ƒimil—rlyD in the ƒ

™—˜le „† ˜ro—d™—sts m—y ˜ e en™rypted —nd sp e™i—l devi™es —re required to

de™o de themF

por th—t m—tterD it is ’merely4 — leg—l ™onvention th—t ordin—rily priv—te

go o ds —re ex™lud—˜leF sf s w—nt others to ˜ e prevented from ™onsuming my ™—r

for ex—mpleD s either h—ve to use te™hnology @su™h —s lo ™ksA or leg—l —uthority

@su™h —s p oli™eA to prevent themF

iven su™h ™l—ssi™ ex—mples —s street lights ™ould ˜ e m—de ex™lud—˜le if

one re—lly w—nted to do soF por ex—mpleD supp ose th—t the lights ˜ro—d™—st

only in infr—redD —nd sp e™i—l goggles were required to t—ke —dv—nt—ge of their

servi™esF yrD if this seems liketoomu™h trou˜leD ™ities ™ould oer ’streetlight

li™ensesD4 the pur™h—se of whi™h would ˜ e required to use streetlight servi™esF

„hose who don9t go out —fter d—rkD don9t need to ˜uyF

„his isn9t —s f—rfet™hed —s it seemsF go—se ‘IWVV“ des™ri˜ es how the inglish

—uthorities ™olle™ted p—yment for lighthouse servi™es ˜—sed on the routes

followed ˜y o ™e—nEgoing vesselsF

ix™lusion is not —n inherent prop erty of go o dsD pu˜li™ or priv—teD ˜ut is

r—ther — so ™i—l ™hoi™eF sn m—ny ™—ses it is ™he—per to m—ke — go o d su™h —s

streetlights univers—lly —v—il—˜le r—ther th—n m—ke them ex™lud—˜leD either

vi— te™hnology or ˜y l—wF

„hese o˜serv—tions h—ve ˜ e—ring on inform—tion go o dsF snform—tion go o ds

—re inherently nonriv—lD due to the tiny ™ost of repro du™tionF roweverD

whether they —re ex™lud—˜le or not dep ends on the leg—l regimeF wost ™ounE

tries re™ognize intelle™tu—l prop erty l—ws th—t —llow inform—tion go o ds to ˜ e

ex™lud—˜leF „he ƒ gonstitution expli™itly gr—nts gongress the duty ’FFFto

promote the progress of s™ien™e —nd useful —rtsD ˜y se™uringD for limited timesD

to —uthors —nd inventorsD the ex™lusive right to their resp e™tive writings —nd

dis™overiesF4

SFI i™onomi™s of intelle™tu—l prop erty

„he key phr—se in the —˜ ove quot—tion is ’for — limited timeF4 sntelle™tu—l

prop erty l—w re™ognizes th—t no ex™lusion would ™re—te p o or in™entives for

the ™re—tion of s€F fut —t the s—me timeD perm—nent intelle™tu—l prop erty S

I

rights would le—d to the st—nd—rd de—dweight losses of monop olyF

vength is only one of the p—r—meters of intelle™tu—l prop erty prote™tionF

„he others —re ’height4D in the sense of the st—nd—rd required for noveltyD

—nd the ’˜re—dth4D in the sense of how ˜ro—dly the s€ rights —re interpretedF

hierent forms of s€ h—ve dierent ™om˜in—tions of these ™h—r—™teristi™sY for

ex—mpleD ™opyright prote™ts the expression of ide—s for quite long p erio ds @up

to US ye—rsAD with — low st—nd—rd for noveltyD ˜ut — n—rrow s™op eF

„here h—s ˜ een mu™h e™onomi™ —n—lysis of intelle™tu—l prop erty prote™E

tion for p—tentsF xordh—us ‘IWTW“ ex—mined the optim—l length of — p—tentD

nding th—t PH ye—rs w—s not unre—son—˜leF ƒ™ot™hmer ‘IWWI“ noted th—t

invention is often ™umul—tive —nd th—t shorter p—tent lives ™ould le—d to reE

du™ed in™entives to inventD ˜ut more invention due to the —˜ility to ˜uild on

to e—rlier inventionsF

ƒever—l —uthorsD su™h —s h—sgupt— —nd ƒtiglitz ‘IWVH“ —nd qil˜ ert —nd

xew˜ ery ‘IWVP“D h—ve re™ognized th—t the ’prize4 n—ture of p—tents le—ds

to so ™i—lly w—steful dupli™—tion of eortF „he p—tent system sets up — r—™eD

whi™h ™—n ™—use rms to devote more resour™es to sp eeding up their dis™overE

ies th—n would ˜ e justied ˜y — ˜ enetG™ost testF ƒupp oseD for ex—mpleD th—t

—num˜er of rese—r™h te—ms were on the verge of m—king —n imp ort—nt dis™ovE

eryD p erh—ps one th—t w—s the next logi™—l step —long — wellEknown rese—r™h

p—thF qr—nting the winning te—m longEterm ex™lusive rights merely ˜ e™—use

they were slightly f—ster th—n others to m—ke — dis™overy ™ould well ™re—te

more monop oly p ower th—n w—s ne™ess—ry to eli™it the innov—tive eortD —nd

slow down future invention —s wellF

„here h—s ˜ een mu™h less investig—tion of the e™onomi™s of ™opyrightF

„he rst pro˜lem is th—t existing ™opyright terms —pp e—r to ˜ e mu™htoo

long from —n e™onomi™ p oint of viewF et ™onvention—l interest e™onomi™

tr—ns—™tions QH or RH ye—rs in the future —re of negligi˜le v—lue so ™opyright

terms of SHEUS ye—rs seem mu™h to long to ˜ e ˜—sed on e™onomi™ ™—l™ul—tionF

sn f—™t —s re™ently —s the l—te IWTHs ™opyrights only l—sted PV ye—rs in

the ƒF i—™h su˜sequent reform of ™opyright l—w in™re—sed the termF „he

di™ulty h—s ˜ een th—t e—™h term extension gr—ndf—thered in the existing

™opyrightsY even though no one would ˜ e willing to ˜—rg—in seriously over

I

e™tu—llyD this is not so o˜viousF sf monop oly owner of inform—tion go o ds eng—ge in

pri™e dis™rimin—tionD —s they ™ommonly doD the de—dweight losses m—y˜emu™h less less

th—n those gener—ted under — singleEpri™e regimeF „his p oint denitely requires further

investig—tionF T

p ossi˜le ™—sh ows SH ye—rs down the ro—dD the owners of —˜ outEtoEexpire

—nd still v—lu—˜le ™opyrights h—d signi™—nt e™onomi™ in™entive to extend

themF

SFP ƒoftw—re p—tents

p until re™entlyD the ƒ €—tent y™e —nd the ™ourts interpreted —lgorithms

—s ’m—them—ti™—l formul—s4 whi™h ™ould not ˜ e p—tentedF roweverD in the

mid eighties they reversed this p oli™y —nd ˜ eg—n to issue p—tents for softw—re

—lgorithmsF ƒu˜sequently the p—tent o™e h—s issued m—ny thous—nds of

softw—re p—tentsF

„here —re sever—l p oli™y issues r—ised ˜y softw—re p—tentsF pirstD until the

l—st ve ye—rsD the p—tent o™e h—s not h—d —dequ—te exp ertise to ev—lu—te

the novelty of su˜mitted p—tentsF „his h—s resulted in ludi™rous ex—mples

su™h —s the gompton p—tent on multimedi—D the gƒp p—tent on downlo—dE

ing exe™ut—˜le ™o deD —nd the ƒoftw—re edvertising gorp or—tion9s p—tent on

P

in™orp or—ting —dvertising into softw—re progr—msF

ƒe™ondlyD there is the pro˜lem of ’su˜m—rine p—tentsX4 p—tents th—t —re

not pu˜li™ly —v—il—˜le due to the f—™t th—t they —re under ™onsider—tion ˜y

the €—tent y™eF sn some ™—sesD —ppli™—nts h—ve —llegedly purp osely deE

l—yed their —ppli™—tions in order to w—it for the m—rket to ’m—ture4 so —s

to m—ximize the v—lue of their p—tentsD —nd to let them m—ke improvements

˜ efore others —re —pprised of their ˜—si™ p—tentF „hese t—™ti™s ™—n distort

the returns to p—tent holdersD frustr—te the dis™losure of p—tented inventionsD

whi™h is — ˜—si™ quid pro quo for p—tent prote™tion under our p—tent systemD

—nd le—d to unne™ess—ry dupli™—tion of eort —nd l—wsuitsF „he re™ent ™h—nge

in p—tent lifetime to twenty ye—rs —fter ling h—s gone — long w—y to redu™e

the pro˜lem of su˜m—rine p—tentsF

w—ny of these pro˜lems —re esp e™i—lly severe for softw—re p—tentsF snnoE

v—tions th—t —re em˜ o died in physi™—l go o ds ™—n ˜ e ˜ ought —nd sold for —

listed pri™e on the op en m—rketD so there is no un™ert—inty —˜ out the ™ost

Q

of in™orp or—ting — new innov—tion into — pro du™tF roweverD the m—rket for

P

sndeedD fru™e vehm—nD the gommissioner of the €„yD h—s ™on™eded th—t there —

num˜er of softw—re p—tents were gr—nted in errorF

Q

elsoD under the rstEs—le do ™trine of p—tent l—wD — p—tent holder @or —ppli™—ntA who

sells —n item ™ont—ining the p—tented te™hnology loses the right to further restri™t the use

of th—t item in ™ommer™eF U

softw—re ™omp onents is still primitiveD so mu™h softw—re is ™re—ted in houseF

„husD one softw—re developer ™—n e—sily infringe up on —nother developer9s

—lgorithmD —ndD —fter ye—rsD nd itself in — very vulner—˜le p osition if the

—lgorithm ends up ˜ eing p—tentedF

ell these re—sons suggest th—t th—t p—tents on —lgorithms should ˜ e n—rE

rowly interpretedD —nd su˜ je™t to high st—nd—rds of noveltyF h—vis et —lF

‘IWWR“ —lso —rgue th—t softw—re p—tents should h—ve — shorter lifesp—n th—n

other types of p—tentsF i—™h of these p oli™ies should ˜ e ™—refully ™onsideredF

es — pr—™ti™—l m—tterD it would ˜ e f—r e—sier for the €„y to set high novelty

st—nd—rds —nd gr—nt n—rrow softw—re p—tents th—n for gongress to sele™tively

—lter p—tent lifetimes for softw—re p—tentsF purthermoreD in m—ny ™—ses the

p—tent lifetime is unimp ort—ntD ˜ e™—use the p—™e of progress is gre—t enough

th—t the p—tent h—s lost —ll of its v—lue ˜y its expir—tion d—teF

T yther w—ys to de—l with ex™lusion

essigning of prop erty rights —re not the only w—y to de—l with intelle™tu—l

prop erty issuesF e se™ond w—y is to ˜undle the ™ontent with — go o d th—t

is ex™lud—˜leF sndeed tr—dition—l medi— for tr—nsmitting inform—tion go o dsD

su™h —s ˜ o okD re™ordsD video t—p esD ghsD —nd so on —re — typ e of ˜undlingF

ynly one p erson ™—n re—d — ˜ o ok —t — given timeD so ex™lusion is not mu™h

of — pro˜lemF

„his do esn9t work for purely digit—l inform—tion go o dsD sin™e the medium

itself do esn9t h—ve mu™h signi™—n™eD ˜ut re™ent te™hnologies like ™ryptoE

gr—phi™ envelopes pl—y simil—r role ˜y ˜undling the inform—tion go o d with

—n ’ex™lud—˜le4 —uthenti™—tion me™h—nismF

e third te™hnique for de—ling with the ex™lusion pro˜lem is using —uditing

or st—tisti™—l tr—™kingF eƒge€ —nd fws p erform this t—sk for the musi™

industry while the gopyright gle—r—n™e genter de—ls with print medi— ˜y

—uditing photo ™opying pr—™ti™es over — p erio d of time —nd ˜—ses — ye—rly fee

on this s—mpleF

e fourth te™hnique for de—l with ex™lusion is to em˜r—™e itD —nd ˜unE

dle the inform—tion go o d with inform—tion th—t sellers w—nt to ˜ e widely

dissemin—ted su™h —s —dvertisingF V

U „erms —nd ™onditions

sntelle™tu—l prop erty l—w —ssigns def—ult prop erty rights to usersD ˜ut li™enses

—nd other forms of ™ontr—™t ™—n sp e™ify other terms —nd ™onditionsF „his

™ont—™ting ™hoi™e p oses —n interesting tr—deoX more li˜ er—l terms —nd ™onE

ditions will gener—lly in™re—se the v—lue — p—rti™ul—r inform—tion go o d to its

p otenti—l usersD ˜ut it will —lso de™re—se the qu—ntity soldF „h—t isD — li™ense

to —n inform—tion go o d th—t ™—n ˜ e sh—redD resoldD —r™hivedD et™F will ˜ e

worth more th—n one th—t ™—nnotY howeverD sh—ringD res—leD —nd —r™hiving —ll

p otenti—lly redu™e the n—l dem—nd for the inform—tion go o dsF

‚oughly sp e—king more li˜ er—l terms —nd ™onditions in™re—se the v—lue

of the inform—tion go o dD shifting the dem—nd ™urve upF roweverD li˜ er—l

terms —nd ™onditions —lso redu™e the s—les of the go o dD shifting the dem—nd

™urve inF „he protEm—ximizing ™hoi™e of li™ensing terms ˜—l—n™es these two

ee™tsF

V €ir—™y

ƒimply sp e™ifying terms —nd ™onditions or intelle™tu—l prop erty l—ws do es not

ensure th—t they will ˜ e enfor™edF slli™it ™opying is — p erenni—l pro˜lemF

vu™kilyD —s with most ™ontr—˜—ndD there is — mitig—ting f—™torF sn order

to sell illi™it ™opies to ™onsumersD they must know where to nd the ™opiesF

„he l—rger the s™—le of op er—tion of —n s€ pir—te the more likely it will ˜ e

dete™ted ˜y the —uthoritiesF „his me—ns th—t in equili˜riumD re—son—˜le

eorts to enfor™e the l—w le—d to rel—tively sm—ll s™—les of op er—tionF †—ri—n

‘IWWV“ oers — mo del of this phenomenonF

W sntern—tion—l ™on™erns

e™™ording to estim—tes from the ƒoftw—re €u˜lishers esso ™i—tionD there —re

m—ny ™ountries where softw—re pir—™y is r—mp—ntF pigure I shows the rel—E

tionship ˜ etween p er ™—pit— in™ome —nd the fr—™tion of illeg—l softw—re in use

in v—rious ™ountriesF

pigure I shows th—t the lower the p er ™—pit— in™omeD the higher the inE

™iden™e of illeg—l ™opiesF „his should not ˜ e surprisingF vesser developed W 26000.0 US 24000.0 22000.0 20000.0 France Japan 18000.0 Italy 16000.0 Britain German 14000.0 12000.0 Korea Per capita income 10000.0 8000.0 Brazil 6000.0 Russia 4000.0 China 2000.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Fraction of pirated software

Source: /Users/hal/Books/StrategicTech/Figures/piracy.quantrix

pigure IX €erE™—pit— in™ome v fr—™tion of softw—re th—t is pir—ted for v—rious

™ountriesF

™ountries h—ve little to lose if they pir—te softw—re —nd h—ve neither the reE

sour™es nor the in™lin—tion to invest in enfor™ementF

„he s—me ee™t shows up in environment—l pr—™ti™esF sn gener—lD the

lower the p er ™—pit— in™ome the less environment—lly —w—re — ™ountry isF

es p er ™—pit— in™ome grows so do es the desire for — ™le—ner environmentF

yn™e — ™ountry p—sses 6SDHHH or so of p er ™—pit— in™ome they st—rt to instiE

tute environment—llyE—w—re p oli™iesF ƒee goursey ‘IWWP“ —nd qrossm—n —nd

urueger ‘IWWI“F

‡e exp e™t th—t the s—me ee™t will o ™™ur with intelle™tu—l prop erty pir—™yF

es ™ountries ˜ e™ome ri™herD their desire for lo ™—l ™ontent in™re—sesF fut —s

they get more —nd more lo ™—l ™ontent pro du™edD the ne™essity of intelle™E

tu—l prop erty prote™tion ˜ e™omes more —nd more —pp—rentF es enfor™ement

of intelle™tu—l prop erty l—ws in™re—seD ˜ oth domesti™ —nd foreign pro du™ers

˜ enetF

„—iw—n is — prime ex—mpleF „hey refused to sign the sntern—tion—l gopyE

right egreement until re™entlyF €rior to this „—iw—n w—s notorious for inE

telle™tu—l prop erty viol—tionsF roweverD on™e the ™ountry ˜ e™—me prosp erE

ous —nd develop ed — l—rge pu˜lishing industryD they joined the intern—tion—l

™opyright —greement in order to —ssure — m—rket for their own pu˜lishing —nd IH

printing industryF

WFI ƒ —s ™opyright pir—te

„he history of intern—tion—l ™opyright p oli™y in the ƒ is —n instru™tive

ex—mple of wh—t to exp e™t from to d—y9s underdeveloped ™ountriesF

„he ƒ gonstitution g—ve gongress the —uthority to ™re—te l—ws reguE

l—ting the tre—tment intelle™tu—l prop ertyF „he rst n—tion—l ™opyrightl—wD

p—ssed in IUWHD provided for — IREye—r ™opyright F F F ˜ut only for —uthors who

were ™itizens or residents of the ƒF „he ƒ extended the ™opyright term to

PV ye—rs in IVQID ˜ut —g—in restri™ted ™opyright prote™tion only to ™itizens

—nd residentsF

„his p oli™y w—s unique —mong develop ed n—tionsF henm—rkD €russi—D

ingl—ndD pr—n™eD —nd felgium —ll h—d l—ws resp e™ting the rights of foreign

—uthorsF fy IVSHD only the ƒD ‚ussi— —nd the yttom—n impire refused to

re™ognize intern—tion—l ™opyrightF

„he —dv—nt—ges of this p oli™y to the ƒ were quite signi™—ntX they h—d

— pu˜li™ hungry for ˜ o oksD —nd — pu˜lishing industry h—ppy to pu˜lish themF

end — re—dy supply w—s —v—il—˜le from ingl—ndF €u˜lishing in the ƒ w—s

virtu—lly — noErisk enterpriseX wh—tever sold well in ingl—nd w—s likely to do

well in the ƒF

emeri™—n pu˜lishers p—id —gents in ingl—nd to —™quire p opul—r worksD

whi™h were then rushed to the ƒ —nd set in typeF gomp etition w—s intenseD

—nd the rst to pu˜lish h—d —n —dv—nt—ge of only d—ys ˜ efore they themselves

were su˜ je™t to ™opyingF sntense ™omp etition le—ds to low pri™esF sn IVRQ

hi™kens9s ghristm—s g—rol sold for six ™ents in the ƒ —nd 6PFSH in ingl—ndF

„hroughout the nineteenth ™enturyD prop onents of intern—tion—l ™opyright

prote™tion lo˜˜ied gongressF „hey —dv—n™ed ve —rguments for their p osiE

tionX @IA it w—s the mor—l thing to doY @PA it would help ™re—te domesti™

—uthorsY @QA it would prevent the inglish from pir—ting emeri™—n —uthorsY

@RA it would elimin—te ruthless domesti™ ™omp etitionY —ndD @SA it would result

in ˜ etter qu—lity ˜ o oksF

hi™kens toured the ƒ in IVRP —nd ple—ded for intern—tion—l ™opyright

on dozens of o ™™—sionsF emeri™—n —uthors supp orted his p ositionD ˜ut their

ple—ding h—d little imp—™t on the pu˜li™ —t l—rge or on gongressF

st w—s not until IVWI th—t gongress p—ssed —n intern—tion—l ™opyright

—™tF „he —rguments —dv—n™ed for the —™t were virtu—lly the s—me —s those II

—dv—n™ed in IVQUF elthough —rguments were the s—meD ˜ut the out™ome

w—s dierentF sn IVQU the ƒ h—d little to lose from ™opyright pir—™yFfy

IVWI they h—d — lot to g—in from intern—tion—l ™opyright|the re™ipro ™—l

rights gr—nted ˜y the fritishF yn top of this w—s the growing pride in purely

emeri™—n liter—ry ™ulture —nd the re™ognition th—t emeri™—n liter—ture ™ould

only thrive if it ™omp eted with inglish liter—ture on —n equ—l fo otingF

„he only sp e™i—l interest group th—t w—s de—d set opp osed to intern—tion—l

™opyright w—s the typesetters unionF „he ingenious solution to this pro˜lem

w—s to ˜uy them oX the gopyright e™t of IVWI extended prote™tion only to

R

those foreign works th—t were typ eset in the ƒ3

„here is no question th—t it w—s in the e™onomi™ selfEinterest of the ƒ to

pir—te inglish liter—ture in the e—rly d—ys of n—tionho o dD just —s it is ™le—rly

in the e™onomi™ selfEinterest of ghin— —nd other vghs to pir—te emeri™—n

musi™ —nd videos nowF fut —s these ™ountries grow —nd develop — longing for

domesti™ ™ontentD they will likely follow the s—me p—th —s the ƒ —nd restri™t

foreign ™omp etition to stimul—te the domesti™ industryF

IH yverlo—d

rer˜ ert ƒimon on™e s—id th—t — ’we—lth of inform—tion ™re—tes — p overtyof

—ttentionF4 „his h—s ˜ e™ome p—infully o˜vious with the —dvent of the ‡orld

‡ide ‡e˜F

hespite the hypeD the ‡e˜ just isn9t —ll th—t impressive —s —n inform—tion

resour™eF „he st—ti™D pu˜li™ly —™™essi˜le r„wv text on the ‡e˜ is roughly

equiv—lent in size to — million ˜ o oksF „he g ferkeley vi˜r—ry h—s V million

volumesD —nd the —ver—ge qu—lity of the ferkeley li˜r—ry ™ontentismu™hD

mu™h higher3 sf IH7 of the m—teri—l on the ‡e˜ is ’usefulD4 then th—t me—ns

there —re —˜ out IHHDHHH useful ˜ o okEequiv—lents on the ‡e˜D whi™h is the

size of go o d pu˜li™ li˜r—ryF „he —™tu—l gure for ’useful4 is pro˜—˜ly more

like I7D whi™h is IHDHHH ˜ o oksD or h—lf the size of —n —ver—ge m—ll ˜ o okstoreF

„he v—lue of the ‡e˜ lies not in the qu—ntity of inform—tion ˜ut r—ther its

—™™essi˜ilityF higit—l inform—tion ™—n ˜ e indexedD org—nizedD —nd hyperlinked

rel—tively e—sily ™omp—red to textu—l inform—tionF e text is just — ™li™k —w—y

r—ther th—n — drive —™ross town —nd —n hour in the li˜r—ryF

R

„his provision rem—ined in ee™t until the midEsixties3 yur sour™e for this dis™ussion

is gl—rk ‘IWTH“F IP

futD of ™ourseD it isn9t th—t simpleF ‡e9ve invested hundreds of millions

of doll—rs in ™—t—logs —nd ™—t—loging for textu—l inform—tionD while ™—t—loging

online inform—tion is in its inf—n™yF „he inform—tion on the ‡e˜ is highly

—™™essi˜le F F F on™e you know where to lo okF

„he pu˜lishing industry h—s developed — v—riety of institutions to de—l

with this pro˜lemX reviewersD refereesD editorsD ˜ o okstoresD li˜r—riesD et™F

„here —re whole set of institutions to help us nd useful inform—tionF fut

where —re the fetter fit fure—us for the snternetc

„he pro˜lem is getting worseF s would like to ™oin — ’w—lthus9s l—w4

of inform—tionF ‚e™—ll th—t w—lthus noted th—t num˜ er of stom—™hes grew

geometri™—lly ˜ut the —mount of fo o d grew line—rlyF€o ol ‘IWVR“ noted th—t

the supply of inform—tion @in virtu—lly every mediumA grows exp onentionE

—lly where—s the —mount th—t is ™onsumed grows —t ˜est line—rlyF „his is

ultim—tely due to the f—™t th—t our ment—l p owers —nd time —v—il—˜le to proE

™ess inform—tion is ™onstr—inedF „his h—s the un™omfort—˜le ™onsequen™e

th—t the fr—™tion of the inform—tion pro du™ed th—t is —™tu—lly ™onsumed is

—symptoting tow—rds zeroF

elong with w—lthus9s l—w of inform—tionD s m—y —s well ™oin — qresh—m9s

v—w of snform—tionF qresh—m s—id th—t ˜—d money drives out go o dF ‡ellD

˜—d inform—tion ™rowds out go o dF ghe—pD low qu—lity inform—tion on the

snternet ™—n ™—use pro˜lems for providers of highEqu—lity inform—tionF

„he in™y™lopedi— fritt—ni™— oered —n snternet edition to li˜r—ries with —

site li™ense su˜s™ription pri™e of sever—l thous—nd doll—rsF wi™rosoft9s in™—rt—

ret—ils for 6RW for — gh ‚ywF in™—rt—9s doing neY ˜ut fritt—ni™— is in serious

trou˜leF fritt—ni™— is now oering — home su˜s™ription for 6ISH p er ye—rD —nd

— home gh version for 6UHD ˜ut even this m—y ˜ e to o highF

ƒo p erh—ps lowEqu—lity inform—tion re—lly do es drive out go o dF w—y˜e

F F F ˜ut qresh—m9s l—w re—lly should ˜ e rest—ted|it9s not th—t ˜—d money

™rowds out go o dD ˜ut th—t ˜—d money sells —t — dis™ountF ƒo ˜—d inform—tion

should sell —t — dis™ountF qo o d inform—tion| relev—ntD timelyD highEqu—lityD

fo ™ussedD —nd useful inform—tion|like the frit—nni™—|should sell —t — preE

miumF end this ˜rings me ˜—™k to the fetter fit fure—usF „he ™riti™—l

pro˜lem for the ™ommer™i—l providers of ™ontentistond—w—y to ™onvin™e

the user th—t they —™tu—lly h—ve timelyD —™™ur—teD relev—ntD —nd highEqu—lity

inform—tion to sellF

‡hen pu˜lishing w—s exp ensiveD it m—de sense to h—ve lots of lters to

determine wh—t w—s pu˜lished —nd wh—t w—sn9tX —gentsD editorsD reviewersD IQ

˜ o okstoresD et™F xow pu˜lishing is ™he—pX —nyone ™—n put up —n homep—ge on

the ‡e˜F „he s™—r™e f—™tor is —ttentionF „he HEI de™ision of ’pu˜lishEorEnot4

no longer m—kes sense|wh—t we need —re new institution—l —nd te™hnologi™—l

to ols to determine where it is worthwhile to fo ™us our —ttentionF

„hey —ren9t here yetD ˜ut some interesting things —re h—pp ening in this

—re—F

yne interesting —ppro—™h involves re™ommender systems su™h —s pireyD

qroupvensD et™F sn pireply you —re presented with — list of old movie titles

—nd you indi™—te whi™h ones you like —nd dislikeF „he ™omputer then nds

p eople who h—ve simil—r t—stes to yours —nd shows you re™ent movie titles

th—t they liked|with the impli™—tion th—t you might like them to oF

sn qroupvens p—rti™ip—nts r—te news items th—t they re—dF ‡hen you

—re presented with — list of items to ex—mineD you see — weighted —ver—ge of

the r—tings of previous re—dersF „he gimmi™k is th—t the weight th—t e—™h

p erson re™eives in this —ver—ge dep end on how often you h—ve —greed with

th—t p erson in the p—stF

ƒystems like pireply —nd qroupvens|wh—t we9re ™—lling ’re™ommender

systems4 or ’™oll—˜ or—tive ltering systems4|—llow you to ’™oll—˜ or—te4

with others who h—ve ™ommon interestsD —nd thus redu™e your own se—r™h

™ostsF

II fusiness mo dels

row do you p—y for re™ommender systemsc ‡h—t9s the e™onomi™ mo delc

„here —re sever—l pro˜lemsF

pirstD there is the issue of in™entivesF row do you ensure th—t p eople

™ontri˜ute honestly to the systemc pirstD o˜serve th—t if you ™—n get them

to ™ontri˜uteD it is in their interest to do it honestlyF sf — user of pirey just

™li™ks —t r—ndomD then he messes up the ™orrel—tions on whi™h the system

dep endsF

„he ˜ig pro˜lem is getting p eople to ™ontri˜ute —t —llF yn™e s9ve seeded

the system with my preferen™esD wh—t is my in™entive to ™ontinue to r—te

new moviesc sf s go to — movie th—t no one h—s r—tedD then s m—y see — ˜—d

movieF fut everyone only go es to movies th—t someone else h—s r—tedD then

who r—te the unr—ted moviesc

„here —re two solutions to this pro˜lemX you ™—n p—y p eople to do the IR

r—tingsD or you ™—n ex™lude p eople who refuse to do their f—ir sh—re of r—tE

ingsF „he rst solution is the w—y ƒiskel —nd i˜ ert m—ke their livingX they

sp e™i—lize in re™ommend—tions —nd get p—id ˜y p eople who nd their re™omE

mend—tions usefulF „he se™ond w—y m—kes more sense in — ™ommunity r—ting

systemX either you provide —n —ppropri—te sh—re of the r—tings or your —re

ex™luded from the systemF

qetting p eople to ™ontri˜ute to knowledge ˜—ses|re™ommend—tions or

—ny other sort of inform—tion|™—n ˜ e quite di™ultF yne of the m— jor ™onE

sulting rms h—s sp ent millions of doll—rs setting up — knowledge ˜—seF ‡hen

the ™onsult—nts nish — pro je™t they9re supp osed to le — rep ort of useful m—E

teri—lF s —sked one of the ™onsult—nts how this workedF ris somewh—t sheepish

reply w—s th—t he w—s T months ˜ ehind in ling his rep ortsF „he re—son w—sD

he s—idD th—t every time he p osted something usefulD he got IS em—ils the next

d—y —sking him for more inform—tion3 „he system h—d neg—tive in™entives3

„he ™onsulting rm h—d sp ent millions to set up the te™hnologyD ˜ut h—dn9t

thought through the in™entive pro˜lemF yh wellD they ™—n —lw—ys hire —n

™onsult—nt F F F

„he pro du™tion of knowledge is — tri™ky thingF fy it9s n—ture it is e—sy to

™opy —nd sh—reF end sin™e it ™osts nothing to sh—reD it is so ™i—lly e™ient to

do soF fut then how do we ™omp ens—te the p eople th—t pro du™e knowledge

in the rst pl—™ec

gonvention—l metho ds for prote™ting intelle™tu—l prop erty don9t —pplyX

ide—s ™—n9t ˜ e p—tentedD —nd ™opyright only prote™ts the expression of ide—sD

not the ide—s themselvesF

vet me suggest th—t one pl—™e th—t rms might lo ok for w—ys to provide

in™entives for knowledge pro du™tion is ˜y lo oking to the industry whose entire

e™onomi™ ˜—se is knowledge|˜y th—t s me—n —™—demi—F „he —™—demi™ system

h—s lots of p e™uli—r fe—turesX pu˜lish or p erishD tenureD pl—gerism t—˜ o osD p eer

reviewD ™it—tionD et™F ‡hen you lo ok —t these fe—tures you see th—t most of

them —re designed to provide in™entives to pro du™e go o d ide—sF

„—ke tenure for ex—mpleF es g—rmi™h—el ‘IWVV“ p oints outD one role

of tenure is to en™our—ge exp erts to truthfully ev—lu—te p eople who —re

™lose su˜stitutes for themselvesF st9s h—rd to get p eople to hire their own

repl—™ements|unless you oer them — tenure gu—r—ntee th—t s—ys they won9t

˜ e repl—™edF IS

IP snstitutions

enother —ppro—™h to the ltering pro˜lem is the institution—l —ppro—™hX ™reE

—ting the equiv—lents of the editorsD pu˜lishersD —nd reviewers for online ™onE

tentF „his is the str—tegy of eyvD gompuserveD —nd wi™rosoftF „hey hop e

to ˜ e™ome the intermedi—ries th—t lter —nd org—nize online inform—tion for

the m—ssesF

s h—ve my dou˜ts —˜ out this str—tegyF s think th—t the ’m—ss m—rket4 is

going to ˜ e less signi™—nt in the future th—n it h—s in the p—stF

yne of the most striking fe—tures of the print medi— in the l—st PH ye—rs h—s

˜ een the demise of the newsp—p ers —nd the rise of the m—g—zineF wost m— jor

™ities h—ve only one newsp—p erY —nd in those few ™ities with two newsp—p ersD

it9s pretty ™le—r th—t one is going to goF

fut you ™—n now get m—g—zines for just —˜ out every p ossi˜le interest

groupD from ˜uttery ™olle™tors to ˜ o dy ˜uilders|—nd there is pro˜—˜ly one

for those who do ˜ oth3

„he s—me thing h—s h—pp ened with „†F sn the l—st IH ye—rs the ˜ig Q „†

networks h—ve seen their m—rket sh—re drop while dozens of new ™h—nnels

h—ve sprung up to serve ni™he m—rketsF „he ƒ™ien™e pi™tion gh—nnelD the

his™overy gh—nnelD the ristory gh—nnel —re —ll oering ™ontent t—rgeted to

those with very sp e™i™ interestsF

s think th—t the snternet will —™™eler—te this trendF €eople will ˜ e —˜le to

™o—les™e —round their p—rti™ul—r interestD ˜ e it ˜uttery ™olle™ting or ˜ o dyE

˜uildingF ivery˜o dy who w—nts to will ˜ e — pu˜lisherF iditors will lter

with resp e™t to topi™ —nd qu—lity|˜ut there will ˜ e lots —nd lots of dierent

editors to ™ho ose fromD so the se—r™h pro˜lem for individu—l users will ˜ e just

—s severeD if not more soD th—n it is nowF

„here9s no getting —w—y from the f—™t th—t inform—tion m—n—gement is

going to ˜ e — ˜igger —nd ˜igger p—rt of our livesF ‡e9ll need to h—ve ˜ etter

to ols to do this t—sk ourselvesD —nd we9ll need to utilize inform—tion m—n—geE

ment sp e™i—lists when ne™ess—ryF ‡hether we —re pro du™ers or ™onsumers

of inform—tion we will need —ddition—l exp ertise to help us lo ™—teD org—nizeD

lterD retrieve —nd use the inform—tion we needF

„his exp ertise is wh—t we h—ve set out to pro du™e —t ferkeleyF ‡e9ve

™re—ted — ƒ™ho ol of snform—tion w—n—gement —nd ƒystemsD whose mission is

twofoldX our rese—r™h mission is to pro du™e more p owerful to ols to m—n—ge

inform—tion —nd our te—™hing mission is to tr—in the inform—tion m—n—gement IT

sp e™i—lists of the futureF ‡e9re giving our students — ™ore ™urri™ulum with

™omputer s™ien™eD li˜r—ry s™ien™eD l—wD —nd m—n—gementF efter these ™ore

™oursesD the students will t—ke ele™tives in —re—s of sp e™i—liz—tion su™h —s

ele™troni™ do ™umentsD —r™hivingD d—t— ˜—sesD inform—tion retriev—lD hum—nE

™omputer interf—™eD —nd so onF

yur students will ˜ e skilled in ˜uilding —nd using inform—tion m—n—geE

ment to olsF ‡e think this exp ertise will ˜ e —ttr—™tive to —ny˜o dy who needs

to m—n—ge inform—tion|whi™h me—ns just —˜ out every˜ o dyD these d—ysF

‡hether you —re — pro du™er or — ™onsumerD — profession—l or — dilett—nteD

you9ve got some inform—tion to m—n—ge|—nd our students will ˜ e there to

help you do itF

ƒo t—ke he—rt|help is on the w—y3 IU

‚eferen™es

vorne g—rmi™h—elF sn™entives in —™—demi™sX ‡hy is there tenurec „he tourE

n—l of €oliti™—l i™onomyD WT@QAXRSQ{RUPD IWVVF

eu˜ ert tF gl—rkF „he wovement for sntern—tion—l gopyright in xineteenth

gentury emeri™—F g—tholi™ niversity of emeri™—n €ressD ‡—shingtonD

hgD IWTHF

‚on—ld go—seF „he rmD the m—rketD —nd the l—wF niversity of ghi™—go

€ressD ghi™—goD IWVVF

hon gourseyF „he dem—nd for environment—l qu—lityF„e™hni™—l rep ortD €u˜li™

€oli™y ƒ™ho olD niversity of ghi™—goD IWWPF

€F h—sgupt— —nd tF ƒtiglitzF n™ert—intyD m—rket stru™ture —nd the sp eed of

r8dF fel l tourn—l of i™onomi™sD p—ges I{PVD IWVHF

‚—nd—ll h—visD wit™hell u—p orD tF rF ‚ei™hm—nD —nd €—mel— ƒ—muelsonF e

m—nifesto ™on™erning the leg—l prote™tion of ™omputer progr—mF golum˜i—

v—w ‚eviewD WRD IWWRF

‚i™h—rd tF qil˜ ert —nd h—vid wF xew˜ eryF €reemptive p—tenting —nd the

p ersisten™e of monop olyF emeri™—n i™onomi™ ‚eviewD UPXSIR{SPTD IWVPF

qene wF qrossm—n —nd el—n fF uruegerF invironment—l imp—™ts of — north

—meri™—n free tr—de —greementF „e™hni™—l rep ortD hep—rtment of i™oE

nomi™sD €rin™eton niversityD IWWIF

‡illi—m xordh—usF snventionD qrowthD —nd ‡elf—reF ws„ €ressD g—m˜ridgeD

weD IWTWF

sthiel he ƒol— €oolF gommuni™—tions plowsX e gensus in the nited ƒt—tes

—nd t—p—nF ilsevier ƒ™ien™eD xew ‰orkD IWVRF

ƒuz—nne ƒ™ot™hmerF ƒt—nding on shoulders of gi—ntsX gumul—tive innov—tion

—nd p—tent l—wF tourn—l of i™onomi™ €erspe™tivesD p—ges PW{RPD IWWIF

g—rl ƒh—piro —nd r—l ‚F †—ri—nF snform—tion ‚ulesX e ƒtr—tegi™ quide for

the xetwork i™onomyF r—rv—rd fusiness ƒ™hool €ressD g—m˜ridgeD weD

IWWVF

r—l ‚F †—ri—nF sntelle™tu—l prop erty pir—™yF„e™hni™—l rep ortD ƒswƒD g

ferkeleyD IWWVF IV