| Journal of the European Economic Association
Markets for Partially-Contractible Knowledge: Bootstrapping Versus Bundling
We discuss how a seller can appropriate rents when selling knowledge that lacks legal property rights by solving either an expropriation or a valuation problem and then analyze how seller rents increase when a portion of the intellectual property (IP) can be protected. The analysis shows that a sequential strategy in which the protected portion of the IP is sold prior to selling the unprotected IP is superior to selling both portions of the IP as a bundle.
Problems and Challenges;
Management Analysis, Tools, and Techniques;