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New Nobel winner Michael Kremer has proposed that we auction off all patents. 10% of time winner gets it, 90% govt pays that price & destroys it, so all can use that innovation. Prior owner gets the $. Do you support this proposal? https://marginalrevolution.com/marginalrevolution/2019/10/the-nobel-prize-in-economic-science-goes-to-banerjee-duflo-and-kremer.html …
A lot of problems with this proposal: 1. It creates marketing costs analogous to an IPO 2. Government budgets are not infinite and tax dollars come from patent created producer surplus 3. Inventor is incentivized to bid infinitely high. No downside, all upside.
Wouldn't it make more sense to have a mandatory licensing provision at some royalty of X% of price?
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