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Showing posts with the label compulsory licensing

Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Economics Applications- Examples from Intellectual Property Rights

  Many past posts have discussed the applications of economics concepts and principles in different facets of life. It has been argued often that the applications are perhaps sub conscious but nevertheless can be theorized. There are often applications that can be theorised through economic thinking while rationalising those actions. The current post will seek to delve into the intellectual property rights (IPRs) and how their application gets rooted in economics. While IPRs need an engagement at depth, the current post will limit to a few examples that highlight the economics at work.   Ever-greening of patents In 2014, the Supreme Court of India invalidated the patent on Gilvea, the anti-cancer drug developed and marketed by Novartis. The patent on the drug had expired in 2006 but the pharma giant wanted to extend the patent. It had made use of the application of the concept of ever-greening. Patents are an outcome of a trade-off between short term and long term prospective rew