Games 2014, 5(2), 116-126; doi:10.3390/g5020116
Article

Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony

1email, 2,* email, 3email and 3email
Received: 1 January 2014; in revised form: 29 April 2014 / Accepted: 7 May 2014 / Published: 20 May 2014
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: Using the political-economic history of the development of telephony during the 1870s as a backdrop, this paper studies a two-player Tullock contest that includes both research effort (R&D) and legal effort (i.e., rent-seeking effort). The two types of efforts complement each other and positively influence the payoff of the contest. We assume that legal effort affects the prize value, increasing the winner’s prospective rents, and research effort impacts the probability of winning the contest. The results of the model break new ground in showing that research effort is a function of legal effort, wherein research effort increases with rent-seeking effort. The model also shows the existence of a strategic equivalence between rent seeking and patent races.
Keywords: rent-seeking contests; patent-race games; simultaneous invention; telephony development
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MDPI and ACS Style

Faria, J.R.; Mixon, Jr., F.G.; Caudill, S.B.; Wineke, S.J. Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony. Games 2014, 5, 116-126.

AMA Style

Faria JR, Mixon, Jr. FG, Caudill SB, Wineke SJ. Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony. Games. 2014; 5(2):116-126.

Chicago/Turabian Style

Faria, João R.; Mixon, Jr., Franklin G.; Caudill, Steven B.; Wineke, Samantha J. 2014. "Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony." Games 5, no. 2: 116-126.

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