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Marginal Revolution has a good write up on it here. Not real world. Changing lives and perhaps the course of human history. At the link, read the part about whether humans are stomachs or brains and it might change your perception of many things being chatted about today. One of the banes of entrepreneurship is patent trolls. Frivolous lawsuits that leech resources. There is a whole industry around it. I have been invested in a startup company that won a lawsuit on a patent against a public company who trampled all over it.

Here is what they said at Marginal Revolution:. Michael Kremer wrote two of my favorite papers ever. The idea of a patent buyout is for the government to buy a patent and rip it up, opening the idea to the public domain.


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How much should the government pay? To decide this they can hold an auction. Thus, we eliminate the innovation tradeoff. You might think the patent buyout idea is unrealistic. Bill Gates was involved with governments in supporting the project. There are plenty of other examples in the paper that are worth noting. The paper delves into many subjects which are too extensive and complex for one short blogpost.

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