caa a22 4500 46792998X CHVBK 20180406152940.0 cr unu---uuuuu 170328e20060201xx s 000 0 eng 10.1007/s11151-006-0001-0 doi (NATIONALLICENCE)springer-10.1007/s11151-006-0001-0 Patent Renewals as Options: Improving the Mechanism for Weeding Out Lousy Patents [Elektronische Daten] [Marc Baudry, Béatrice Dumont] This paper examines how patent renewal fees may be restructured to discourage low-value patents with the goal of reducing the burden on patent offices without unduly impairing innovation incentives. We depart from Pakes' (1986, Econometrica, 54, 755-784) real-option model by moving to an approach involving binomial trees, widely used in valuing financial options. The new approach has the advantage of allowing the dynamics of the patent rent to follow a wide range of stochastic processes. The model is estimated using French data from 1970 to 2002. Policy simulations cast some doubt on the relevance of the current schedule of renewal fees. An alternative fee schedule is suggested. Springer, 2006 patent renewal nationallicence real-option model nationallicence Baudry Marc Department of Economics, University of Rennes I, CREM-CNRS, 7 Place Hoche, 35000, Rennes, France aut Dumont Béatrice Department of Economics, University of Rennes I, CREM-CNRS, 7 Place Hoche, 35000, Rennes, France aut Review of Industrial Organization Kluwer Academic Publishers 28/1(2006-02-01), 41-62 0889-938X 28:1<41 2006 28 11151 https://doi.org/10.1007/s11151-006-0001-0 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11151-006-0001-0 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Baudry Marc Department of Economics, University of Rennes I, CREM-CNRS, 7 Place Hoche, 35000, Rennes, France aut NATIONALLICENCE 700 1- Dumont Béatrice Department of Economics, University of Rennes I, CREM-CNRS, 7 Place Hoche, 35000, Rennes, France aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers 28/1(2006-02-01), 41-62 0889-938X 28:1<41 2006 28 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer