The Tragedy of the Anti-Commons

The video explores the Schumpeterian approach and its relation to Knightian uncertainty in financial markets. It discusses the convergence of research between finance and technical change, highlighting the challenges of investment in innovation under uncertainty. The impact of IPR legislation on innovation and patenting is analyzed, revealing increased litigation costs. The video concludes with a discussion on how strong patents can stifle innovation, leading to a 'tragedy of the anticommons.'

What is a key characteristic of Knightian uncertainty in financial markets?

• Predictable future outcomes

• Stable market structures

• Inherent market instability

• Complete market transparency

What is a major factor that drives investment in innovation despite uncertainty?

• Stable market conditions

• High predictability of returns

• Low cost of innovation

• Inherent opportunities in technology

What has been the effect of tightening IPR legislation on the rate of innovation?

• No change in litigation costs

• Increased rate of innovation

• Decreased rate of patenting

• Increased rate of patenting

What is the 'tragedy of the anticommons' in the context of patents?

• Excessive patent strength hindering innovation

• Too few patents leading to innovation

• Complete freedom to innovate without restrictions

• Lack of legal protection for patents

What is a consequence of the increase in patenting as discussed in the video?

• Simplification of patent laws

• Decrease in innovation opportunities

• Increase in irrelevant patents

• Reduction in litigation costs