The Motivations to Create

38 Pages Posted: 15 Jun 2018 Last revised: 3 Oct 2018

See all articles by Stan J. Liebowitz

Stan J. Liebowitz

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics

Alejandro Zentner

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: September 24, 2018

Abstract

Economists have long debated the degree to which inventive and artistic activities were either the result of instinctual urges on the part of creators, or the responses of creators to potential pecuniary rewards. Copyright and patent laws are based on a view that rewards are an important factor. In this paper we attempt to provide an empirical analysis of this question by using a recent data set covering the book production industry. We find evidence that authors publish more new books when they earned higher payments for previously written books, although at high enough levels of payment their production of new works begins to decline, consistent with a backward bending supply function. We also find that few authors are in the backward bending region and that the overall effect of payments to authors is to increase their output. Our results are also consistent with the belief that instinctual elements may play a large role in the creation of books.

Keywords: copyright, innovation, creation, patent

JEL Classification: K11, L8, J2, O34

Suggested Citation

Liebowitz, Stan J. and Zentner, Alejandro, The Motivations to Create (September 24, 2018). Available at SSRN: https://ssrn.com/abstract=3195384 or http://dx.doi.org/10.2139/ssrn.3195384

Stan J. Liebowitz (Contact Author)

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics ( email )

800 W Campbell Road
Mail Station SM 31
Richardson, TX 75080
United States
972-883-2807 (Phone)
972-883-2818 (Fax)

HOME PAGE: http://www.utdallas.edu/~liebowit/

Alejandro Zentner

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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