The ?market for Errors?: and the Commercialization of Ideas: a Bargaining Approach

Considering the important role that knowledge plays in modern economies, this work starts from the recognition that the intrinsic features of intellectual properties may hinder the creation of a specific market for their circulation among different institutions and firms. Innovation is a complex process which generally starts in R&D laboratories, but many times important innovations may occur just by chance. The commercialization of this "sub-product" of innovation or "errors" may involve at least two actors. However, this book shows that there are very strict conditions for the market for ideas to exist, and are even stricter when the seller is risk averse.