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absence allocated argue assume assumption asymptotically auction bind Boldrin Botswana capital of quality capital stock commodities competitive equilibrium competitive innovations competitive market constant returns consumers conventional wisdom copies cost of reproduction decreasing depreciated old capital Discussion Papers downstream licensing Email embodied entrepreneurs example fixed cost fixed factor government enforced monopoly grants of monopoly Hellwig and Irmen ideas increasing returns initial inno innovation and growth innovation chains innovation takes place innovative activity investment legal monopoly licensing provisions monopolistic competition monopoly power monopoly rights Napster nonrivalrous output past the post patent law Paul Klemperer perfect competition period positive theory previous section problem qualities of capital quality capital reproduced and distributed returns to scale role of indivisibilities Romer Subscription sumer sunk cost superstars technological change technological innovation technology set Technology Shocks tion type b capital unit of capital unit of consumption utility function vation zero