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Defining Property Rights: The Case of Knowledge-Based Resources
Advances in information technology, together with increasing economic globalization, are creating dilemmas regarding the levels of definition of property rights that exist with respect to knowledge-based resources. The issues at stake include enforcing property rights of companies without alienating consumers and making knowledge-based resources affordable. Proposes a framework to help resolve these dilemmas and predict the costs vs. benefits of defining the property rights over resources. The costs vs. benefits are mainly determined by: capture costs and rent dissipation created by nonexclusivity of the resource; exchange and policing costs related to the resource; costs of reduced investment created by nonexclusivity of the resource; exchange value of the resource; and the social costs of exclusivity of the resource.