Note: This is post #85 in a weekly video series on basic economics.
The last entry in this series considered how institutions can incentivize the creation of new ideas. Because of this connection, the Founding Fathers wrote a protection mechanism for new ideas into the U.S. Constitution in the form of patents.
But are patents the only (or even best) way to reward good ideas?
In this video by Marginal Revolution University, Alex Tabarrok examines two more incentive options: prizes, and subsidies.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Click here to see other videos in the Introduction to Economics series.
