LAW 723 Lecture Notes - Lecture 10: Market Power

57 views3 pages

Document Summary

An exploitation right may be granted as a non-exclusive right or as an exclusive right, and may be limited in respect of place, time or content. Eg, lady bought a drink with liquid nitrogen and then got sick. The insururance policy states that it did(cid:374)(cid:859)t appl(cid:455) to situatio(cid:374)s i(cid:374)(cid:448)ol(cid:448)i(cid:374)g the (cid:858)dispersal(cid:859) of polluta(cid:374)ts. A polluta(cid:374)t is a(cid:374) irrita(cid:374)t, a(cid:374)d the courts concluded that the liquid nitrogen was an irritant, therefore the lady did not get insurance coverage. Constructive ambiguity- ip licenses as a case study. While an incomplete contract may intuitively seem undesirable, maintaining a certain degree of ambiguity in negotiated contracts can be economically efficient in reality. Ambiguity decreases the ex ante transaction costs associated with contract negotiation and allows to conclude transactions that otherwise would not close. Ambiguity works particularly well in relational contracts, where reciprocity and mutual dependence often give rise to ex post cooperation mechanisms that may render detailed ex ante negotiations unnecessary.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents