Annually increasing renewal fee

Assignment Help Business Economics

Reference no: EM13742253

We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restriction runs. For example, if my will stipulates that Blackacre should be used exclusively as a residence for 100 years, then I would have to make provision in my will to pay the state for each year that the restriction runs. In effect, the state deducts an annual fee from a bequest for a testator who desires to impose posthumous restrictions on property for a specified number of years. At what level would you set such a fee? Would it be the same for all types of conditions and all types of property? Is such a fee more efficient than the rule against perpetuities?

Reference no: EM13742253

Questions Cloud

Identify and discuss at least two economic phenomena : Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate (besides any mentioned in the text). Select an economic phenomenon and determine which of the models d..

What is the expected value of your house : Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a food destroys your house, in which case it will be worth $0. You have $50,000 in your bank account.

Suppose james has utility over wealth : Suppose James has utility over wealth given by u(w) = w 1 2 . Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the res..

Two-period consumption model of borrowing and saving : Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved prefere..

Annually increasing renewal fee : We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..

Temporary and permanent damages on the incentives : Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory

Yields an improvement that has commercial value : Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million.

Use the theory of transaction costs to justify protecting : Use the theory of transaction costs to justify protecting the following rights by injunction or damages: Suppose that two people choose to litigate a dispute. Should the law presume that if two parties are prepared to litigate, transaction costs must..

Potential consequences of ignoring emergent strategies : Read the following article: “Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today?”. What is the difference between deliberate strategies and emergent strategies? How might emergent strategies help with a future strategic planning p..

User Account

All Pages