Abstract

http://ssrn.com/abstract=1617052
 
 

Citations



 


 



Is There a Market for Ideas?


Joshua S. Gans


University of Toronto - Rotman School of Management; NBER

Scott Stern


Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

June 2010

Industrial and Corporate Change, Vol. 19, Issue 3, pp. 805-837, 2010

Abstract:     
This article draws on recent work in market design to evaluate the conditions under which a market for ideas or technology (MfTs) will emerge and operate efficiently. As highlighted by Roth (2007), effective market design must ensure three basic principles: market thickness, lack of congestion, and market safety. Roth also highlights the importance of dealing with “repugnance.” Our analysis identifies the factors that are, in most circumstances, likely to inhibit the allocative efficiency of MfT. We show that key institutional developments such as the development of formalized IP exchanges suggest that effective market design may be possible for some innovation markets. Finally, our analysis suggests that markets for ideas are beset by the “repugnance” problem: from the perspective of market design, Open Science is an institution that places normative value on “free” disclosure and so undermines the ability of ideas producers to earn market-based returns for producing even very valuable “pure” knowledge.

Keywords: 031

Accepted Paper Series





Not Available For Download

Date posted: June 4, 2010  

Suggested Citation

Gans, Joshua S. and Stern, Scott, Is There a Market for Ideas? (June 2010). Industrial and Corporate Change, Vol. 19, Issue 3, pp. 805-837, 2010. Available at SSRN: http://ssrn.com/abstract=1617052 or http://dx.doi.org/dtq023

Contact Information

Joshua S. Gans (Contact Author)
University of Toronto - Rotman School of Management ( email )
Canada
HOME PAGE: http://www.joshuagans.com

NBER ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Scott Stern
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
Cambridge, MA 02142
United States
617-253-3053 (Phone)
617-253-2660 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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