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On the Shoulders of Giants

Book description

This book presents eleven classic papers by the late Professor Suzanne Scotchmer with introductions by leading economists and legal scholars. This book introduces Scotchmer's life and work; analyses her pioneering contributions to the economics of patents and innovation incentives, with a special focus on the modern theory of cumulative innovation; and describes her pioneering work on law and economics, evolutionary game theory, and general equilibrium/club theory. This book also provides a self-contained introduction to students who want to learn more about the various fields that Professor Scotchmer worked in, with a particular focus on patent incentives and cumulative innovation.

Reviews

'Suzanne Scotchmer left us a remarkable legacy: highly original, deep, rigorous work on the economics of innovation, club theory and game theory. This book is a fitting tribute to her scholarship and to Suzanne as a person. It should be read by everyone with an interest in microeconomic theory.'

Jerry R. Green - John Leverett Professor in the University, Harvard University

'This is an invaluable volume, which will be on the bookshelf of every IP economist and legal scholar. It contains many of Suzanne Scotchmer’s classical papers, often with an introduction by leading scholars, as well as very touching personal souvenirs from her friends and colleagues. A fitting tribute to this exceptional woman I was lucky to count as a friend.'

Jean Tirole - Chairman, Toulouse School of Economics, France

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Page 1 of 3



Page 1 of 3


Readers who have come this far will know that Prof. Scotchmer had many different research interests, many of which she pursued throughout her career. A simple chronological list of publications obscures this diversity and, in particular, the progression of her ideas from one paper to the next. This section seeks to avoid the problem by dividing her work into six categories: “innovation,” “game theory,” “club theory,” “law and economics,” “public finance,” and “creative writing.” Inevitably, this additional structure is somewhat arbitrary. That said, it is at least convenient since it both mirrors the organization of the current volume and largely tracks the categories that Prof. Scotchmer herself used to describe her work.1

Maurer, S. M. and Scotchmer, S.. 2014. “The Lost Message of Terminal Railroad,” California Law Review: Circuit (October 8).
Scotchmer, S. 2013. “Patents in the University: Priming the Pump and Crowding Out,” Journal of Industrial Economics 61(3): 817844.
Scotchmer, S. and Zhou, J.. 2011. “Picking Winners in Rounds of Elimination.” Available at http://socrates.berkeley.edu/~scotch/winners.pdf.
Scotchmer, S. 2010a. “Cap-and-Trade, Emissions Taxes, and Innovation,” Innovation Policy and the Economy 11: 2954.
Scotchmer, S. 2010b. “Openness, Open Source, and the Veil of Ignorance,” Proceedings of the American Economic Association 100: 165171.
Erkal, N. and Scotchmer, S.. 2009. “Scarcity of Ideas and R&D Options: Use It, Lose It, or Bank It,” National Bureau of Economic Research Working Paper 09–14940.
Menell, P. and Scotchmer, S.. 2007. “Intellectual Property,” in Polinsky, M. and Shavell, S. (eds.), Handbook of Law and Economics, pp. 14721570. Amsterdam: Elsevier.
Maurer, S. M. and Scotchmer, S.. 2006a. “Profit Neutrality in Licensing: The Boundary Between Antitrust Law and Patent Law,” American Law and Economics Review 8: 476522. Reprinted in this volume at pp. 234–261.
Maurer, S. and Scotchmer, S.. 2006b. “Open Source Software: The New IP Paradigm,” in Hendershott, T. (ed.), Handbook of Economics and Information Systems, pp. 285319. Amsterdam: Elsevier.
Park, Y. and Scotchmer, S.. 2005. “Digital Rights Management and the Pricing of Digital Products,” National Bureau of Economic Research Working Paper 11532.
Schankerman, M. and Scotchmer, S.. 2005. “Still Looking for Lost Profits: The Case of Horizontal Competition,” UC Berkeley Institute of Business and Economic Research Working Paper E05–344.
Maurer, S. M. and Scotchmer, S.. 2004. “Procuring Knowledge,” in Libecap, G. (ed.), Intellectual Property and Entrepreneurship: Advances in the Study of Entrepreneurship, Innovation and Growth, Vol. 15, pp. 131. Amsterdam: Elsevier.
Scotchmer, S. 2004a. “The Political Economy of Intellectual Property Treaties,” Journal of Law, Economics, and Organizations 20: 415437.
Scotchmer, S. 2004b. Innovation and Incentives. Cambridge MA: MIT Press.
Scotchmer, S. 2003. “Intellectual Property – When Is It the Best Incentive Mechanism for S&T Data?,” in Esanu, J. M. and Uhlir, P. F. (eds.), The Role of Scientific and Technical Data and Information in the Public Domain: Proceedings of a Symposium, pp. 1518. Washington DC: National Academies Press.
Samuelson, P. and Scotchmer, S.. 2002. “The Law and Economics of Reverse Engineering,” Yale Law Journal 111: 15751663. Reprinted in this volume at pp. 201–229.
Maurer, S. M. and Scotchmer, S.. 2002. “The Independent-Invention Defense in Intellectual Property,” Economica 69: 535547.
Gallini, N. and Scotchmer, S.. 2002. “Intellectual Property: When Is It the Best Incentive System?,” in Jaffe, A., Lerner, J., and Stern, S. (eds.), Innovation Policy and the Economy, Vol. 2, pp. 5178. Cambridge MA: MIT Press. Reprinted 2007 in Cafaggi, Fabrizio, Nicita, Antonio, and Pagano, Ugo (eds.), Legal Orderings and Economic Institutions. Milton Park, UK: Routledge. Reprinted in this volume at pp. 59–82.
Schankerman, M. and Scotchmer, S.. 2001. “Damages and Injunctions in the Protection of Intellectual Property,” RAND Journal of Economics 32: 199220. Reprinted in this volume at pp. 167–195.
Maurer, S. M. and Scotchmer, S.. 1999. “Database Protection: Is it Broken and Should We Fix It?,” Science 284: 11291130.
Scotchmer, S. 1999a. “On the Optimality of the Patent Renewal System,” RAND Journal of Economics 30: 181196.
Scotchmer, S. 1999b. “Delegating Investment in a Common-Value Project,” UC Berkeley Institute of Business and Economic Research Working Paper E99–266.
O’Donoghue, T., Scotchmer, S., and Thisse, J.-F.. 1998. “Patent Breadth, Patent Life, and the Pace of Technological Improvement,” Journal of Economics and Management Strategy 7: 132.
Scotchmer, S. 1998a. “Incentives to Innovate,” in Newman, Peter (ed.), New Palgrave Dictionary of Economics and the Law, pp. 273277. London: Macmillan.
Scotchmer, S. 1998b. “R&D Joint Ventures and Other Cooperative Arrangements,” in Anderson, R. and Gallini, N. (eds.), Competition Policy and Intellectual Property Rights in the Knowledge-Based Economy, pp. 203222. Calgary: University of Calgary Press.
Scotchmer, S. 1996a. “Protecting Early Innovators: Should Second-Generation Products be Patentable?,” RAND Journal of Economics 27: 322331.
Scotchmer, S. 1996b. “Patents as an Incentive System,” in Allen, B. (ed.), Economics in a Changing World, Vol. 2, pp. 281296. London and New York: Macmillan Press.
Green, J. and Scotchmer, S.. 1995. “On the Division of Profit Between Sequential Innovation,” RAND Journal of Economics 26: 2033. Reprinted in this volume at pp. 102–120.
Gandal, N. and Scotchmer, S.. 1993. “Coordinating Research through Research Joint Ventures,” Journal of Public Economics 51: 173193.
Scotchmer, S. 1991. “Standing on the Shoulders of Giants: Cumulative Research and the Patent Law,” Journal of Economic Perspectives 5(1): 2941. Reprinted in Edwin, and Mansfield, Elizabeth (eds.), The Economics of Technical Change. Cheltenham: Edward Elgar Publishing Company, 1993. Reprinted in this volume at pp. 89–102.
Green, J. and Scotchmer, S.. 1990. “Novelty and Disclosure in Patent Law,” RAND Journal of Economics 21: 131146.
Scotchmer, S. 2008. “Risk Taking and Gender in Hierarchies,” Theoretical Economics 3: 499524.
Scotchmer, S. 2005. “Consumption Externalities, Rental Markets and Purchase Clubs,” Economic Theory 25: 235253.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 2005. “The Organization of Consumption, Production and Learning,” in Vind, K. (ed.), The Birgit Grodal Symposium. Berlin: Springer-Verlag.
Scotchmer, S. 2002. “The Core and Hedonic Core: Reply to Wooders (2001), with Counterexamples,” Journal of Mathematical Economics 37(4): 341353.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 2001. “Clubs and the Market: Large Finite Economies,” Journal of Economic Theory 101: 4077.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 2000. “A Theory of Firm Formation and Skills Acquisition,” Conference paper presented at World Congress of the Econometric Society, Seattle, WA (August 11–16).
Dekel, E. and Scotchmer, S.. 1999. “On the Evolution of Attitudes Towards Risk in Winner-Take-All Games,” Journal of Economic Theory 87: 125143. Reprinted in this volume at pp. 308–312.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 1999. “Clubs and the Market,” Econometrica 67: 11851218. Reprinted in this volume at pp. 285–306.
Minehart, D. and Scotchmer, S.. 1999. “Ex Post Regret and the Decentralized Sharing of Information,” Games and Economic Behavior 27(1): 114131.
Engl, G. and Scotchmer, S.. 1997. “The Law of Supply in Games, Markets and Matching Models,” Economic Theory 9: 539550.
Diamantaris, D., Gilles, R., and Scotchmer, S.. 1996. “The Decentralization of Pareto Optima in Economies with Public Goods and Inessential Private Goods,” Economic Theory 8: 555564.
Engl, G. and Scotchmer, S.. 1996. “The Core and the Hedonic Core: Equivalence and Comparative Statics,” Journal of Mathematical Economics 26: 209248.
Farrell, J. and Scotchmer, S.. 1994. “Irrational Behavior in the AT&T Investment Game,” Economics Letters 45: 471474.
Scotchmer, S. and Thisse, J.-F.. 1994. “The Implications of Space for Competition,” Studies in Regional and Urban Planning 3: 227246. Also printed in Kirman, A., Gerard-Varet, L.-A., and Ruggiero, M. (eds.). 1995. Space and Value in Economics in the Next Ten Years. New York and Oxford: Oxford University Press.
Dekel, E. and Scotchmer, S.. 1992. “On the Evolution of Optimizing Behavior,” Journal of Economic Theory 57(2): 392406.
Scotchmer, S. and Thisse, J.-F.. 1992. “Space and Competition: A Puzzle,” Annals of Regional Science 26: 269286.
Farrell, J. and Scotchmer, S.. 1988. “Partnerships,” Quarterly Journal of Economics 103(2), 279297. Reprinted in this volume at pp. 269–285.
Scotchmer, S. 1986. “Market Share Inertia with More than Two Firms: An Existence Problem,” Economics Letters 21(1): 7779.
Scotchmer, S. and Shannon, C.. 2010. “Verifiability and Group Formation in Markets.” Available at http://socrates.berkeley.edu/~scotch/groups-77.pdf.
Scotchmer, S. 2008. “Clubs,” in Blume, L. and Durlauf, S. (eds.), New Palgrave Dictionary of Economics, 2nd edn., Vol. 1, pp. 834839. London: Macmillan.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 2005. “The Organization of Consumption, Production and Learning,” in Schultz, C. and Vind, K. (ed.), The Birgit Grodal Symposium, pp. 149186. Berlin: Springer-Verlag.
Scotchmer, S. 2005. “Consumption Externalities, Rental Markets and Purchase Clubs,” Economic Theory 25: 235253.
Scotchmer, S. 2002. “Local Public Goods and Clubs,” in Auerbach, Alan and Feldstein, Martin (eds.), Handbook of Public Economics, Vol. IV, pp. 19972042. Amsterdam: North-Holland Press.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 2001. “Clubs and the Market: Large Finite Economies,” Journal of Economic Theory 101: 4077.
Jehiel, P. and Scotchmer, S.. 2001. “Constitutional Rules of Exclusion in Jurisdiction Formation,” Review of Economic Studies 68: 393411.
Ellickson, B., Grodal, B., Scotchmer, S., and Zame, W.. 1999. “Clubs and the Market,” Econometrica 67: 11851218.
Gilles, R. and Scotchmer, S.. 1998. “Decentralization in Club Economies: How Multiple Private Goods Matter,” in Pines, David, Sadka, Ephraim, and Zilcha, Itzak (eds.), Topics in Public Economics: Theoretical and Applied Analysis, pp. 121138. New York: Cambridge University Press.
Gilles, R. and Scotchmer, S.. 1997. “Decentralization in Replicated Club Economies,” Journal of Economic Theory 72: 363387.
Jehiel, P. and Scotchmer, S.. 1997. “Free Mobility and the Optimal Number of Jurisdictions,” Annales d’Economie et de Statistiques 45: 219231.
Scotchmer, S. 1997. “On Price-Taking Equilibria in Club Economies with Nonanonymous Crowding,” Journal of Public Economics 65(1): 7588.
Glazer, A., Niskanen, E., and Scotchmer, S.. 1997. On the Uses of Club Theory: Preface to the Club Theory Symposium,” Journal of Public Economics 65(1): 38.
Scotchmer, S. 1996. “Externality Pricing in Club Economies,” Ricerche Economiche 50(4): 347366.
Scotchmer, S. 1994. “Concurrence et biens publics,” Annales d’Economie et de Statistique 33: 157186. Also published as “Public Goods and the Invisible Hand,” in Quigley, J. and Smolensky, E. (eds.). 1994. Modern Public Finance, pp. 93–119. Cambridge MA: Harvard University Press.
Scotchmer, S. and Wooders, M.. 1987. “Competitive Equilibrium and the Core in Club Economies with Anonymous Crowding,” Journal of Public Economics 34: 159173.
Scotchmer, S. 1986. “Local Public Goods in an Equilibrium: How Pecuniary Externalities Matter,” Regional Science and Urban Economics 16: 463481.
Scotchmer, S. 1985. “Two-Tier Pricing of Shared Facilities in a Free-Entry Equilibrium,” RAND Journal of Economics 16(4): 456472.
Scotchmer, S. 1985. “Profit-Maximizing Clubs,” Journal of Public Economics 27: 2585.
Rubinfeld, D. and Scotchmer, S.. 1998. “Contingent Fees,” in Newman, P. (ed.), New Palgrave Dictionary of Economics and the Law, pp. 415420. London: Macmillan.
Scotchmer, S. 1998. “Rules of Evidence and Statistical Reasoning in Court,” in Newman, P. (ed.), New Palgrave Dictionary of Economics and the Law, pp. 389394. London: Macmillan.
Schrag, J. and Scotchmer, S.. 1997. “On the Self-Reinforcing Nature of Crime,” International Journal of Law and Economics 17: 325335.
Schrag, J. and Scotchmer, S.. 1994. “Crime and Prejudice: The Use of Character Evidence in Criminal Trials,” Journal of Law, Economics, and Organizations 10(2): 319342.
Rubinfeld, D. and Scotchmer, S.. 1993. “Contingent Fees for Lawyers: An Economic Analysis,” RAND Journal of Economics 24: 343356.
Scotchmer, S. 2002. “Local Public Goods and Clubs,” in Auerbach, Alan and Feldstein, Martin (eds.), Handbook of Public Economics, Vol. IV, pp. 19972042. Amsterdam: North-Holland Press.
Scotchmer, S. 1992. “The Regressive Bias in Taxation and Enforcement,” Public Finance 58: 366371.
Dekel, E. and Scotchmer, S.. 1990. “Collusion Through Insurance: Sharing the Costs of Oil Spill Cleanups,” American Economic Review 80: 249252.
Jones, C. A. and Scotchmer, S.. 1990. “The Social Cost of Uniform Regulatory Standards,” Journal of Environmental Economics and Management 19: 6172.
Quigley, J. and Scotchmer, S.. 1989. “What Counts? Analysis Counts,” Journal of the Association for Policy Analysis 8(3): 483489.
Scotchmer, S. 1989a. “Who Profits from Taxpayer Confusion?,” Economics Letters 29: 4955.
Scotchmer, S. 1989b.“The Effect of Tax Advisors on Tax Compliance,” in Roth, J. and Scholz, J. (eds.), Why People Pay Taxes: A Social Science Perspective, pp. 182–199. Philadelphia PA: University of Pennsylvania Press.
Scotchmer, S. 1989c. “Equivalent Variation with Uncertain Prices,” Economics Letters 29: 127128.
Scotchmer, S. and Slemrod, J.. 1989. “Randomness in Tax Enforcement,” Journal of Public Economics 38: 1732.
Scotchmer, S. 1987. “Audit Classes and Tax Enforcement Policy,” American Economic Review: Papers and Proceedings 77(2): 229233. Reprinted in this volume at pp. 340–347.
Scotchmer, S. 1986.“The Short Run and Long Run Benefits of Environmental Improvement,” Journal of Public Economics 30: 6181.
Scotchmer, S. 1985. “Hedonic Prices and Cost/Benefit Analysis,” Journal of Economic Theory 37(1): 5575.
“Rain,” appeared in “Half-Baked Alaska,” Alaska Magazine, March 1997. Available at http://socrates.berkeley.edu/~scotch/alaska/rain.pdf.
“Ghosts of Christmases Past” (aka “Reminders of Home”), Alaska Magazine, December 1996. Available at http://socrates.berkeley.edu/~scotch/alaska/ghosts.pdf.
“Devils Club Tea,” Anchorage Daily News Sunday Magazine (We Alaskans), October 20, 1996. Available at http://socrates.berkeley.edu/~scotch/alaska/devils.pdf.
“Smoked Fish: A Christmas Story,” published in Seattle Times Sunday Magazine (The Pacific), December 17, 1995 and Anchorage Daily News Sunday Magazine (We Alaskans), December 17, 1995. Available at http://socrates.berkeley.edu/~scotch/alaska/smkedfsh.pdf.
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