What is the best way to reward innovation? While prizes avoid deadweight loss, intellectual property screens out projects generating low consumer surplus per unit sold. We propose a stretch parameterization of demand under which innovations differ in both the size of the market they create and consumers ’ average willingness-to-pay for them. We solve the resulting multidimensional screening problem by decomposing the analysis into a separate choice of the level and structure of rewards for innovations. Optimal policy generally calls for some market power but never full monopoly pricing. The appropriate degree of market power is determined by a value-weighted average of the innovation supply elasticity multiplied by the log-variance of the ratio of the monopoly prices to quantities, opening our analysis to empirical calibration. Our results also shed light on the pricing of platforms, incentives within firms for product development and public infrastructure.

and Engineering Research Council of Canada through operating grants OGP-0036747, OGP-046506, and International Scientific Exchange Awards ISE0046203, ISE0125663, and NWO Grant NF 62-376. The book was conceived in late Spring 1986 in the Valley of the Moon in Sonoma County, California. The actual writing lasted

Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980's. We impute the higher unemployment towelfare states ' diminished ability to cope with more turbulent economic times

The role of the state in international migration Exploring the transition from colony to independence

EIROforum is a partnership of Europe's seven largest intergovernmental research organisations. In EIROforum, these organisations pursue joint initiatives, combine resources, and share best practices. Their excellence in their respective fields enables European scientists to perform world

this document, there was an implicit understanding that the demands of fulfilling the goal of a European Research Area could give rise to a European Research Council

by the Hong Kong Research Grants Council under contract numbers HKUST 734/96E, HKUST 6076/97E, and HKU 7124/99E. Authors' addresses: Y.-K. Kwok, Department of Electrical and Electronic Engineering, The University of Hong Kong, Pokfulam Road, Hong Kong; email: ykwok@eee.hku.hk; I. Ahmad, Department

some important differences between the role played by the equity market in Italy (and likely in other Continental European countries) and in the United States. This paper is part of the research project on "The decision to go public and the stock market as a source of capital," promoted

in research spans an immense and diverse spectrum of literature, in origin and in character. As a result research activities at both worldwide as well as at European level are very fragmented. This necessitates that a broader vision

. The first task of a theory of classical conditioning becomes that of This work was supported by grants from the United Kingdom Science and Medical Research Councils. We have made free use of many suggestions, especially concerning inhibitory learning, made by A. Dickinson. We thank him and also C. Adams, P