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Granting a monopoly on something with zero marginal costs creates massive dead-weight losses for society. Creating that information is a positive externality, s
by ItsMonkk 5y ago
Granting a monopoly on something with zero marginal costs creates massive dead-weight losses for society. Creating that information is a positive externality, so that positive externality should be subsidized. The problem we need to work out is how much value is a particular bit of information worth.
This is an idea I came up with, so likely has many issues to be worked out, but the core of the idea seems valid. We need to find out how much people value this information. We know how to get people to bid their actual values. We put IP and copyright and open source software into a Vickrey Auction. To do this you need not ask everyone every bit of IP, you would need to work out a statistically significant sampling of the population. This would be a multiple item auction, so you might have 1000 people in the auction, but only the top 750 bidders would walk away with access. The bottom 25% would have to go the year without. But since they would get access to all OSS and IP that they did not have to sample, they would still win out. The top 75% would, like any other Vickrey Auction, pay the amount of the highest bidder that did not win.
Owners would have the option to either keep it secret, or release it into the auctions. As the societal value of the item would be much larger having it open, every IP owner would choose to open it up so that they could get their share of the pot. Once an item has a fairly stable price, you wouldn't have to get a sampling every year for it. You would then either take funds from some other tax, or just print it, and subsidize the owners based on the value that the sampling provided.