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Why would it help to put an arbitrarily high price on a monopoly? In the case where the profit (from owning the patent) is less than the cost of the patent it
by runeks 6y ago
Why would it help to put an arbitrarily high price on a monopoly?
In the case where the profit (from owning the patent) is less than the cost of the patent it will be equivalent to the absence of patents. In the case where the profit is higher than the patent cost it’s still a company bribing the government for monopoly rights.
Unless the profits made by the government from patents is used to put a discount on the retail price of the product for which the patent is held. But even this is probably worse than free competition.