Economics Quote by Michele Boldrin
““While there are certainly informational spillovers as ideas move from person to person, it is hard to see why in most instances they are not priced. Although it is possible to imagine examples such as the wheelbarrow where an idea cannot be used without revealing the secret, relatively few ideas are of this type. For copyrightable creations such as books, music, plays, movies and art, unpriced spillovers obviously play little role. A book, a CD or a work of art must be purchased before it can be used, and the creator is free to make use of his creation in the privacy of his home without revealing the secret to the public at large. Similarly with movies or plays. In all cases, the creation must effectively be purchased before the “secret” is revealed.””
About This Quote
Source Paper: Spillover Effects in Intellectual Property, 2018
Ideas often spread without direct compensation, but most creative works are sold before their secrets are fully revealed, limiting unpriced spillovers.
In simple terms: Ideas spread, but most are bought before they’re fully known.
Key Takeaway
Consider pricing mechanisms for knowledge sharing.
Themes
economics
property rights
knowledge diffusion
innovation
market failure
Mood
analytical
critical
inquisitive
Type
theoretical
policy
economic analysis
When to use this quote
- research collaboration
- product development
- creative industries
- policy making
- academic debate
Key Concepts
intellectual property law
spillover theory
public goods
Questions to Reflect On
- What incentives could encourage open sharing of ideas?
- How do informal networks affect the value of creative work?
A Different Perspective
Assumes all creators can enforce pricing, ignoring informal sharing.
