Justification of Intellectual Property Rights: A Game Theory Perspective

Abstract

Repeated depiction of justifying Intellectual property rights using mere economic incentive rationale is some what outdated and exhaustively used. This paper discusses the existing rationales and also makes an attempt to understand the underlying principle for justification of intellectual property rights using game theory. I contend that the intellectual property rights does matter and it affects the strategic behaviour of inventors, who interact under the given conditions. Analysis of strategic behaviour assists not only in understanding the dominant strategy for the players under a given system but also how these dominant strategies mould the strengthening of laws to protect the market rights of these individual players. This paper also makes an attempt to study how dominant strategies in a game can influence the shaping up of domestic and international laws.

Keywords: Intellectual property rights, justification, incentives and game theory

JEL Classification: C7