Difference between revisions of "Chapter 2, section 2"

From Yochai Benkler - Wealth of Networks
Jump to navigation Jump to search
m
(revert)
Line 1: Line 1:
[http://benevolently.freehostia.com/content/view/doppler/ doppler] [http://mauballe.125mb.com/web/navigatore-altimetro/ navigatore altimetro] [http://grahrens.125mb.com/view/new/selen-nuda/ selen nuda gratis] [http://selemku.t35.com/text/directory/abiti-gala.htm abiti gala] [http://www.freewebtown.com/prncessprncipe/library/html/lotta-in.htm lotta in ring] [http://zoelverd.freeweb7.com/description/lib/sotto-il/ sotto il segno del pericolo] [http://oedi.freehostia.com/text/directory/acer-palmare/ acer palmare navigatore gps] [http://licohwar.homeblock.com/library/html/gemmes/ gemmes] [http://coarmago.t35.com/content/view/quando-partivano/ quando partivano i lenti il bagatto] [http://beshennayabelka.freehostia.com/content/view/spurgo.htm spurgo] [http://oedi.freehostia.com/text/directory/incontrare-donna/ incontrare donna russa] [http://grahrens.125mb.com/view/new/evolution-soccer/ evolution soccer] [http://flheddin.125mb.com/content/view/televisori-.htm televisori 32 pollici crt] [http://wainfan.t35.com/view/new/chat-erotica.htm chat erotica annunci] [http://oedi.freehostia.com/text/directory/lucio-dalla/ lucio dalla luce dei miei occhi] [http://getm0ney.freewebpage.org/lib/type-of/ type of famme] [http://lorcaxon.homeblock.com/data/listino-automobile/ listino automobile] [http://selemku.t35.com/text/directory/brocca-e.htm brocca e catino] [http://licohwar.homeblock.com/library/html/www-mappe/ www mappe] [http://kopapguw.homeblock.com/topic/lavoro-riva/ lavoro riva del garda] [http://www.freewebtown.com/prncessprncipe/library/html/abiti-armani.htm abiti armani donna] [http://getraylo.freeweb7.com/img/styles/messanger-download.htm messanger download] [http://kopapguw.homeblock.com/topic/cerco-travestito/ cerco travestito] [http://selemku.t35.com/text/directory/lg-.htm lg - gr-409] [http://www.freewebtown.com/prncessprncipe/library/html/super-dilatazioni.htm super dilatazioni] [http://www.freewebtown.com/prncessprncipe/library/html/calendario-cosmopolitan.htm calendario cosmopolitan] [http://www.freewebtown.com/starbriteyellow/resources/articles/nuovi-movimenti.htm nuovi movimenti religiosi rapporto] [http://boreldar.t35.com/text/directory/windows-mediacenter.htm windows mediacenter] [http://benevolently.freehostia.com/content/view/hagen-germania/ hagen (germania)] [http://mcwardlo.t35.com/library/html/coltello/ coltello] [http://mauballe.125mb.com/web/sex-sex/ sex sex action women and man vree] [http://getraylo.freeweb7.com/img/styles/il-veliero.htm il veliero] [http://huruple.125mb.com/text/directory/www-renesto/ www renesto it] [http://greensticky.freehostia.com/library/html/www-/ www  alitalia it] [http://huruple.125mb.com/text/directory/mobili-in/ mobili in stile] [http://oedi.freehostia.com/text/directory/controllo-dal/ controllo dal dottore] [http://gawelzba.t35.com/library/html/www-ciccioriccio.htm www ciccioriccio com] [http://www.freewebtown.com/prncessprncipe/library/html/honda-sh.htm honda sh moto] [http://www.freewebtown.com/prncessprncipe/library/html/maravillosa-esta.htm maravillosa esta noche] [http://gawelzba.t35.com/library/html/flavio-briatore.htm flavio briatore nudo] [http://licohwar.homeblock.com/library/html/sientelo-video/ sientelo video] [http://lorcaxon.homeblock.com/data/inno-haka/ inno haka] [http://zoelverd.freeweb7.com/description/lib/locali-scambisti/ locali scambisti] [http://wainfan.t35.com/view/new/sharon-stone.htm sharon stone basic instinct] [http://benevolently.freehostia.com/content/view/maktoob-com/ maktoob com] [http://coarmago.t35.com/content/view/mazzucchelli/ mazzucchelli] [http://kopapguw.homeblock.com/topic/profondita-ridotta/ profondita ridotta] [http://coarmago.t35.com/content/view/zoom-mrt/ zoom mrt-3] [http://beshennayabelka.freehostia.com/content/view/go-for.htm go for it] [http://saline-joy.freehostia.com/web/hp-a.htm hp 51625a] [http://www.freewebtown.com/prncessprncipe/library/html/ceramica-a.htm ceramica a vibo valentia] [http://zoelverd.freeweb7.com/description/lib/hp-server/ hp server] [http://lorcaxon.homeblock.com/data/non-mi/ non mi dirmi che mi ami] [http://flheddin.125mb.com/content/view/il-gabbiano.htm il gabbiano jonathan] [http://mcwardlo.t35.com/library/html/forno-microonde/ forno microonde sharp] [http://oedi.freehostia.com/text/directory/mmc-nokia/ mmc nokia 6630] [http://kopapguw.homeblock.com/topic/de-/ de - lovely] [http://getm0ney.freewebpage.org/lib/martini/ martini] [http://zoelverd.freeweb7.com/description/lib/digicom-usb/ digicom usb] [http://mcwardlo.t35.com/library/html/nikon-reflex/ nikon reflex analogica] [http://wainfan.t35.com/view/new/dumortierite.htm dumortierite] [http://selemku.t35.com/text/directory/smugglers-run.htm smugglers run] [http://greensticky.freehostia.com/library/html/lg-lp/ lg l1940p] [http://oedi.freehostia.com/text/directory/tratado-de/ tratado de peru con chile] [http://gawelzba.t35.com/library/html/kit-vivavoce.htm kit vivavoce sony ericsson z1010 per] [http://oedi.freehostia.com/text/directory/imco/ imco] [http://failtoexpress.freehostia.com/html/macchina-caffe.htm macchina caffe capsule ariete] [http://failtoexpress.freehostia.com/html/grecia-viaggio.htm grecia viaggio] [http://failtoexpress.freehostia.com/html/sony-.htm sony - vaio vgc-v2s] [http://selemku.t35.com/text/directory/issa-issa.htm issa issa issa la vela] [http://lorcaxon.homeblock.com/data/riassunto-agostino/ riassunto agostino moravia] [http://getm0ney.freewebpage.org/lib/salve-regina/ salve regina sister act] [http://kopapguw.homeblock.com/topic/mercedes-sl/ mercedes sl 320 elegance] [http://boreldar.t35.com/text/directory/pacchetto-partenza.htm pacchetto partenza firenze forli rimini] [http://scaleslea.freewebpage.org/text/directory/hitman-contracts/ hitman contracts per pc] [http://www.freewebtown.com/starbriteyellow/resources/articles/los-invasores.htm los invasores de nuevo leon] [http://coarmago.t35.com/content/view/rover-/ rover 75 2 0 cdti] [http://www.freewebtown.com/starbriteyellow/resources/articles/la-principessa.htm la principessa di mendoza] [http://saline-joy.freehostia.com/web/addi-al.htm addi al nubilato] [http://benevolently.freehostia.com/content/view/edirol-ma/ edirol ma] [http://saline-joy.freehostia.com/web/firewalls.htm firewalls] [http://oedi.freehostia.com/text/directory/estelle-reyna/ estelle reyna] [http://zoelverd.freeweb7.com/description/lib/mi-ermanita/ mi ermanita] [http://beshennayabelka.freehostia.com/content/view/alessandro-colnago.htm alessandro colnago] [http://lorcaxon.homeblock.com/data/chuck-/ chuck  - ck] [http://getraylo.freeweb7.com/img/styles/porno-occhi.htm porno occhi di gatto] [http://greensticky.freehostia.com/library/html/kansas-city/ kansas city] [http://www.freewebtown.com/prncessprncipe/library/html/contributo-regione.htm contributo regione prima casa] [http://getraylo.freeweb7.com/img/styles/galeazzi-vaffanculo.htm galeazzi vaffanculo] [http://oedi.freehostia.com/text/directory/distruttore-per/ distruttore per carta] [http://oedi.freehostia.com/text/directory/le-vibrazioni/ le vibrazioni testi canzoni] [http://mcwardlo.t35.com/library/html/tastiera-e/ tastiera e mouse per apple] [http://greensticky.freehostia.com/library/html/flight-bumblee/ flight bumblee] [http://beshennayabelka.freehostia.com/content/view/www-unipa.htm www unipa it concorsi] [http://saline-joy.freehostia.com/web/ravenna-albergo.htm ravenna albergo] [http://wainfan.t35.com/view/new/fuga-.htm fuga  da  alcatraz] [http://licohwar.homeblock.com/library/html/mantide/ mantide] [http://failtoexpress.freehostia.com/html/gioco-di.htm gioco di pacman 1] [http://grahrens.125mb.com/view/new/salina-eolie/ salina eolie] [http://grahrens.125mb.com/view/new/maryred/ maryred] [http://kopapguw.homeblock.com/topic/skyblog/ skyblog] [http://wainfan.t35.com/view/new/calendario-partita.htm calendario partita mondiale calcio] [http://beshennayabelka.freehostia.com/content/view/jeans-alla.htm jeans alla moda] [http://scaleslea.freewebpage.org/text/directory/villa-ada/ villa ada crew sound] [http://zoelverd.freeweb7.com/description/lib/lancaster-la/ lancaster la perla nera] [http://www.freewebtown.com/prncessprncipe/library/html/tucumana.htm tucumana] [http://www.freewebtown.com/starbriteyellow/resources/articles/liviu-pustiu.htm liviu pustiu] [http://wainfan.t35.com/view/new/emilia-romagna.htm emilia romagna il pane] [http://failtoexpress.freehostia.com/html/www-michele.htm www michele it] [http://benevolently.freehostia.com/content/view/www-yucatan/ www yucatan gob mx] [http://grahrens.125mb.com/view/new/happy-song/ happy song] [http://getraylo.freeweb7.com/img/styles/nomadi-e.htm nomadi e spagna] [http://getraylo.freeweb7.com/img/styles/calze.htm calze] [http://wainfan.t35.com/view/new/cd-vasco.htm cd vasco rossi fronte del palco] [http://oedi.freehostia.com/text/directory/www-corvara/ www corvara it] [http://www.freewebtown.com/boogiejames/topic/operazione-aquila.htm operazione aquila] [http://coarmago.t35.com/content/view/anais-cacharel/ anais cacharel] [http://huruple.125mb.com/text/directory/basebaal/ basebaal] [http://flheddin.125mb.com/content/view/lento-julieta.htm lento julieta] [http://zoelverd.freeweb7.com/description/lib/breath-midge/ breath midge ure] [http://www.freewebtown.com/prncessprncipe/library/html/thesuffering.htm thesuffering] [http://saline-joy.freehostia.com/web/hoover-acenta.htm hoover acenta] [http://selemku.t35.com/text/directory/la-serenissima.htm la serenissima tommy v] [http://gawelzba.t35.com/library/html/abc-tecnica.htm abc (tecnica)] [http://flheddin.125mb.com/content/view/yahoo-mail.htm yahoo mail] [http://beshennayabelka.freehostia.com/content/view/i-soldi.htm i soldi di inzaghi] [http://oedi.freehostia.com/text/directory/hotel-costa/ hotel costa del sol] [http://gawelzba.t35.com/library/html/buy-xenical.htm buy xenical] [http://boreldar.t35.com/text/directory/laura-pausini.htm laura pausini non c e] [http://www.freewebtown.com/starbriteyellow/resources/articles/boomboomvolleyball.htm boomboomvolleyball] [http://mcwardlo.t35.com/library/html/lettore-dvd/ lettore dvd home theatre] [http://gawelzba.t35.com/library/html/sesso-mantova.htm sesso mantova] [http://huruple.125mb.com/text/directory/pelicula-la/ pelicula la sirenita] [http://www.freewebtown.com/starbriteyellow/resources/articles/remenber.htm remenber] [http://failtoexpress.freehostia.com/html/hp-compaq.htm hp compaq nc8230] [http://beshennayabelka.freehostia.com/content/view/bobine.htm bobine] [http://flheddin.125mb.com/content/view/tricontrol-rasoio.htm tricontrol rasoio] [http://scaleslea.freewebpage.org/text/directory/cyber-page/ cyber page] [http://getraylo.freeweb7.com/img/styles/tastiera-accessori.htm tastiera accessori palmari] [http://coarmago.t35.com/content/view/v-sony/ v3 sony] [http://benevolently.freehostia.com/content/view/fiat-multipla/ fiat multipla power] [http://lorcaxon.homeblock.com/data/baci-tra/ baci tra carolina e tommi] [http://coarmago.t35.com/content/view/b-b/ b b last minute puglia] [http://flheddin.125mb.com/content/view/www-gigi.htm www gigi d alesio] [http://www.freewebtown.com/prncessprncipe/library/html/motolaggy.htm motolaggy] [http://getraylo.freeweb7.com/img/styles/fermi-tutti.htm fermi tutti questo e uno spettacolo] [http://licohwar.homeblock.com/library/html/notebook-hp/ notebook hp nx8220 - pm 740 1 73 ghz] [http://beshennayabelka.freehostia.com/content/view/usb-to.htm usb to vga] [http://failtoexpress.freehostia.com/html/coppia-treviso.htm coppia treviso] [http://kopapguw.homeblock.com/topic/la-oreja/ la oreja de bango] [http://huruple.125mb.com/text/directory/peschiera-garda/ peschiera garda] [http://oedi.freehostia.com/text/directory/nokia-edge/ nokia edge umts] [http://saline-joy.freehostia.com/web/fornarina-jeans.htm fornarina jeans] [http://coarmago.t35.com/content/view/donne-calcio/ donne calcio] [http://selemku.t35.com/text/directory/imate-jam.htm i-mate jam cavo] [http://huruple.125mb.com/text/directory/toshiba-/ toshiba 20 lcd] [http://lorcaxon.homeblock.com/data/i-film/ i film proiettati oggi a catania] [http://mcwardlo.t35.com/library/html/carol/ carol] [http://benevolently.freehostia.com/content/view/mc-corp/ mc corp] [http://www.freewebtown.com/starbriteyellow/resources/articles/bands.htm bands] [http://oedi.freehostia.com/text/directory/processori-amd/ processori amd venice 3 0] [http://failtoexpress.freehostia.com/html/dragostea-din.htm dragostea din tin instrumental] [http://oedi.freehostia.com/text/directory/rai-it/ rai it maturita 2004] [http://coarmago.t35.com/content/view/lettere-d/ lettere d emore] [http://kopapguw.homeblock.com/topic/jennipher-frost/ jennipher frost] [http://flheddin.125mb.com/content/view/female-masturbation.htm female masturbation photos] [http://www.freewebtown.com/boogiejames/topic/foto-di.htm foto di donne dello spettacolo] [http://selemku.t35.com/text/directory/durezza.htm durezza] [http://beshennayabelka.freehostia.com/content/view/a-fuji.htm a350 fuji] [http://huruple.125mb.com/text/directory/austrodaimler/ austro-daimler] [http://licohwar.homeblock.com/library/html/tuta-pelle/ tuta pelle] [http://lorcaxon.homeblock.com/data/modulo-memoria/ modulo memoria 512 mb] [http://mcwardlo.t35.com/library/html/nisam-ti/ nisam ti ja bilo tko] [http://flheddin.125mb.com/content/view/nissan-ravenna.htm nissan ravenna] [http://huruple.125mb.com/text/directory/cardarelli/ cardarelli] [http://mauballe.125mb.com/web/lunga/ lunga] [http://getm0ney.freewebpage.org/lib/lu-rusciu/ lu rusciu nosciu] [http://beshennayabelka.freehostia.com/content/view/schwob-libri.htm schwob libri] [http://getraylo.freeweb7.com/img/styles/fuckit.htm fuckit] [http://huruple.125mb.com/text/directory/comunedinapoli/ comunedinapoli] [http://beshennayabelka.freehostia.com/content/view/hotel-villa.htm hotel villa claudia augusta] [http://boreldar.t35.com/text/directory/tre-maschi.htm tre maschi] [http://greensticky.freehostia.com/library/html/vendita-/ vendita      case] [http://oedi.freehostia.com/text/directory/sin-bandera/ sin bandera que lloro] [http://zoelverd.freeweb7.com/description/lib/agriturismo-barletta/ agriturismo barletta] [http://greensticky.freehostia.com/library/html/cartoline-gennaio/ cartoline gennaio] [http://mcwardlo.t35.com/library/html/iwan-czarne/ iwan czarne oczy] [http://coarmago.t35.com/content/view/lcgae-sharp/ lc-37ga5e sharp] [http://failtoexpress.freehostia.com/html/ti-ho.htm ti ho inventata io] [http://wainfan.t35.com/view/new/vincenzo-pastorelli.htm vincenzo pastorelli] [http://getm0ney.freewebpage.org/lib/elezioni-provinciali/ elezioni provinciali messina 2003] [http://coarmago.t35.com/content/view/chatcity/ chatcity] [http://failtoexpress.freehostia.com/html/wharfedale-latina.htm wharfedale latina] [http://wainfan.t35.com/view/new/sempron-amd.htm sempron amd] [http://selemku.t35.com/text/directory/fujifilm-s.htm fujifilm s2 pro in roma] [http://greensticky.freehostia.com/library/html/casa-teolo/ casa teolo] [http://greensticky.freehostia.com/library/html/cavolo/ cavolo] [http://www.freewebtown.com/boogiejames/topic/ventole-cpu.htm ventole cpu xeon] [http://mauballe.125mb.com/web/roma-campo/ roma campo flaminio] [http://scaleslea.freewebpage.org/text/directory/toshiba-satellite/ toshiba satellite a60 186] <table width="650">
+
<table width="650">
 
<tr valign="top">
 
<tr valign="top">
 
<td>
 
<td>

Revision as of 15:39, 13 August 2007

John Stuart Mill, On Liberty |Table of Contents | Chapter 2: Summary
Discuss The Effects of Exclusive Rights


Chapter 2 Some Basic Economics of Information Production and Innovation, section 2:

The Effects of Exclusive Rights

Introduction

Chapter 2

The Diversity of Strategies in our Current Information Production System

Chapter 2, section 1

The Effects of Exclusive Rights

Once we recognize that there are diverse strategies of appropriation for information production, we come to see a new source of inefficiency caused by strong "intellectual property"-type rights. Recall that in the mainstream analysis, exclusive rights always cause static inefficiency - that is, they allow producers to charge positive prices for products (information) that have a zero marginal cost. Exclusive rights have a more ambiguous effect dynamically. They raise the expected returns from information production, and thereby are thought to induce investment in information production and innovation. However, they also increase the costs of information inputs. If existing innovations are more likely covered by patent, then current producers will more likely have to pay for innovations or uses that in the past would have been available freely from the public domain. Whether, overall, any given regulatory change that increases the scope of exclusive rights improves or undermines new innovation therefore depends on whether, given the level of appropriability that preceded it, it increased input costs more or less than it increased the prospect of being paid for one's outputs.

The diversity of appropriation strategies adds one more kink to this story. Consider the following very simple hypothetical. Imagine an industry that produces "infowidgets." There are ten firms in the business. Two of them are infowidget publishers on the Romantic Maximizer model. They produce infowidgets as finished goods, and sell them based on patent. Six firms produce infowidgets on supply-side (Know-How) or demand-side (Scholarly Lawyer) effects: they make their Realwidgets or Servicewidgets more efficient or desirable to consumers, respectively. Two firms are nonprofit infowidget producers that exist on a fixed, philanthropically endowed income. Each firm produces five infowidgets, for a total market supply of fifty. Now imagine a change in law that increases exclusivity. Assume that this is a change in law that, absent diversity of appropriation, would be considered efficient. Say it increases input costs by 10 percent and appropriability by 20 percent, for a net expected gain of 10 percent. The two infowidget publishers would each see a 10 percent net gain, and let us assume that this would cause each to increase its efforts by 10 percent and produce 10 percent more infowidgets. Looking at these two firms alone, the change in law caused an increase from ten infowidgets to eleven - a gain for the policy change. Looking at the market as a whole, however, eight firms see an increase of 10 percent in costs, and no gain in appropriability. This is because none of these firms actually relies on exclusive rights to appropriate its product's value. If, commensurate with our assumption for the publishers, we assume that this results in a decline in effort and productivity of 10 percent for the eight firms, we would see these firms decline from forty infowidgets to thirty-six, and total market production would decline from fifty infowidgets to forty-seven.

Another kind of effect for the change in law may be to persuade some of the firms to shift strategies or to consolidate. Imagine, for example, that most of the inputs required by the two publishers were owned by the other infowidget publisher. If the two firms merged into one Mickey, each could use the outputs of the other at its marginal cost - zero - instead of at its exclusive-rights market price. The increase in exclusive rights would then not affect the merged firm's costs, only the costs of outside firms that would have to buy the merged firm's outputs from the market. Given this dynamic, strong exclusive rights drive concentration of inventory owners. We see this very clearly in the increasing sizes of inventory-based firms like Disney. Moreover, the increased appropriability in the exclusive-rights market will likely shift some firms at the margin of the nonproprietary business models to adopt proprietary business models. This, in turn, will increase the amount of information available only from proprietary sources. The feedback effect will further accelerate the rise in information input costs, increasing the gains from shifting to a proprietary strategy and to consolidating larger inventories with new production.

Given diverse strategies, the primary unambiguous effect of increasing the scope and force of exclusive rights is to shape the population of business strategies. Strong exclusive rights increase the attractiveness of exclusive-rights-based strategies at the expense of nonproprietary strategies, whether market-based or nonmarket based. They also increase the value and attraction of consolidation of large inventories of existing information with new production.

When Information Production Meets the Computer Network

Chapter 2, section 3

Strong Exclusive Rights in the Digital Environment

Chapter 2, section 4

John Stuart Mill, On Liberty |Table of Contents | Chapter 2: Summary
Discuss The Effects of Exclusive Rights