Selling Ideas: The Determinants of Patent Value in an Auction Environment

Abstract:     
Although previous empirical studies have found relationships between patent characteristics and value, none have determined how specific attributes relate to auction value or even the probability of a successful auction sale. Using a Heckman two-step model, we regress thirteen independent variables against unique patent auction data, finding that publicly-owned and frequently referenced patents are more valuable, and that other things equal, there is an optimal time to offer a patent up for auction.

Number of Pages in PDF File: 19

Keywords: auction, patent, citation, valuation

JEL Classification: O31, O32, O33, O34

working papers series