nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2020‒07‒20
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Intellectual property reform in the laboratory By Ismaël Benslimane; Paolo Crosetto; Raul Magni-Berton; Simon Varaine
  2. Differences in composition of seemingly identical branded products: Impact on consumer purchase decisions and welfare By Liesbeth Colen; George Chryssochoidis; Pavel Ciaian; Federica Di Marcantonio
  3. Economic rationale behind differences in the composition of seemingly identical branded food products in the Single Market By Carlo Russo; Luisa Menapace; Marcello Sansone; Edward Kyei Twum; Negin Fathinejad; Annarita Colamatteo; Maria Anna Pagnanelli

  1. By: Ismaël Benslimane (IPhiG - Institut de Philosophie de Grenoble - UGA - Université Grenoble Alpes); Paolo Crosetto (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Raul Magni-Berton (IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble); Simon Varaine (PACTE - Pacte, Laboratoire de sciences sociales - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UJF - Université Joseph Fourier - Grenoble 1 - UPMF - Université Pierre Mendès France - Grenoble 2)
    Abstract: This study attempts to experimentally capture the effects of democratic reform of intellectual property (IP) and measure how a vote "against IP" can disappoint the most talented innovators and reduce their creativity. Contrary to expectations, the results show that such a vote increases overall creativity. Actually, the most talented innovators do not vote in favor of IP. Rather, those who vote in favor of IP are those who benefit relatively more from royalties. Surprisingly, no correlation is found between these two populations: the IP in our experiment seems not to reward the best players, but the players choosing an 'autarkic' strategy of relying on their own creationsand forego cross-fertilization with other players. These are not particularly brilliant players thatopt for a rent-seeking strategy that maximises gainsfromthe IP systemitself. There are plausible arguments to argue that this result is at least partly valid in the real world, especially for complexand highly sequential innovations where it has been proven that patent trolls and anti-competitivestrategies are important. These findings lead us not to recommend IP constitutional protections,because there are no major "tyranny from the majority" concerns.
    Keywords: Intellectual Property,Patents,Institutional Reform,Innovation policy,Creativity,Real effort task,Vote,Laboratory experiment
    Date: 2020–05
  2. By: Liesbeth Colen (European Commission - JRC); George Chryssochoidis (University of Kent); Pavel Ciaian (European Commission - JRC); Federica Di Marcantonio (European Commission - JRC)
    Abstract: The issue of Differences in Composition of Seemingly Identical branded products (DC-SIP) refers to the case of “goods [being] marketed in the Single Market under the same brand or trademark but with differences in content, composition or quality in individual EU Member States†(European Commission, 2017a). The main concern is that “in some parts of Europe, people are sold food of lower quality than in other countries, despite the packaging and branding being identical†, as stated by President Juncker (European Commission, 2017b). In this report we aim to analyse whether and how this issue affects consumers. We do so in economic terms, by analysing how consumer purchase decisions and consumer welfare are affected by the fact that the same brand owner offers seemingly identically branded food products but having different properties. Based on the conceptual and empirical knowledge developed in the fields of economics, marketing and consumer psychology, we build a conceptual framework to analyse the formation of consumer quality perceptions, purchasing decisions and welfare. We look into the different factors that shape food quality perception, how these may differ across countries and individual consumers, and relate these to the issue of DC-SIP. Finally, we analyse the impact of disconfirmation of consumers' expectations and the role of unfairness in consumer decision making and welfare to understand consumers' reactions to DC-SIP.
    Keywords: dual food quality, food chain, branded food products, differences in composition, consumers, unfairness, quality perception
    JEL: D12 D91 L15 L66
    Date: 2020–05
  3. By: Carlo Russo (University of Cassino and Lazio Meridionale); Luisa Menapace (Technical University of Munich – Tum); Marcello Sansone (University of Cassino and Lazio Meridionale); Edward Kyei Twum (University of Cassino and Lazio Meridionale); Negin Fathinejad (University of Cassino and Lazio Meridionale); Annarita Colamatteo (University of Cassino and Lazio Meridionale); Maria Anna Pagnanelli (University of Cassino and Lazio Meridionale)
    Abstract: This report presents the results of a review of the economic literature about the problem of Difference in Composition of Seemingly Identical Branded Product (DC-SIP). The problem is also referred to as dual quality. Academic literature about DC-SIP is almost non-existent. Consequently, this report focuses on contributions that are indirectly related to the topic and yet are able to foster an understanding of the economic principles of DC-SIP. The report provides a conceptual analysis in order to explain the rationale for brand owners to use DC-SIP practices and policy related issues; it does not bring empirical evidence as it is not available in the literature.
    Keywords: dual food quality, food chain, branded food products, differences in composition, quality discrimination
    JEL: L15 L11 L66
    Date: 2020–05

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