Our model economy is perfectly competitive, and thus incumbents do not earn any monopoly rent
that can be transferred to new entrants.
The government is simply an agent to facilitate an internal transfer between the citizens of a nation-state, who have collectively consented to an artificial monopoly, in order to create the monopoly rent
incentive to spur its inventive citizens to action.
answering this question: (1) the single monopoly rent
theorem and (2)
It is also inherent in our previous assertion that monopoly rent
, which includes both the resource rent and excess profits, exceeds the resource rent obtained in the competitive market.
The purpose of patents is to create a scarcity, thereby generating a monopoly rent
for the holders of these rights.
Licensing Exclusivity, Transfer Costs, Monopoly Rent
, Tacit Knowledge, Intellectual Property, Power Distance, Network Externality
In the European market environment, where exchange monopolies are still prevalent, the real owners of the liquidity are now questioning a structure where they provide their liquidity to a monopoly that then charges monopoly rent
prices to trade on its system, takes the resulting trading data and sells it back to the original liquidity provider for a sizeable profit.
This paper argues that there are strong economic arguments for treating monopoly rent
as a social detriment, that any "public benefit test" should so treat them, and that the argument most commonly advanced in New Zealand for the "total surplus standard"--that welfare economics provides no secure reason in principle for comparing the gains of monopolists with the losses of consumers--provides no good reason for policymakers to ignore transfers, and altogether misses the really important economic arguments for regulating monopoly rents
out of existence.
If baseball teams as a group do not earn monopoly rent
(above market rates of return) on strictly financial terms after appropriate accounting adjustments are made, it is because (1) the indirect or nonfinancial returns are not being measured, (2) the monopoly rent
has already been capitalized in a higher franchise value, or (3) the industry is being mismanaged.
Yet it too is different from a monopoly rent
in that the market is deliberately changed not deliberately refrained from movement.
Auto workers got a piece of the automobile industry's monopoly rent
, especially before international competition among auto makers squeezed out much of that rent.
Rather, the purpose of an intellectual property right is to create a scarcity, thereby generating a monopoly rent
for the holder of the right.