[k

Wj\I

where Wj is the value of the agricultural sector in the PGRFA-utilizing countries. This value can be defined as consumer plus producer surplus at the retail level, and Wj \I (i.e., Wj without I) is the value of the agricultural sector assuming that it could not obtain PGRFA set I. If suppliers of I had some form of market power of the supply of set / in period j, then they would capture a portion of Vj(i) .5

For an illustration of how V}{I) can be formally represented, take the seed industry as an example and assume for simplicity that Vj(I) represents only benefits to that stakeholder. In a highly stylised form that considers as beneficial only the number, and not the quality, of varieties in set I, the seed industry maximises the following profit function:6

where S is seed sales, N is the number of varieties in set /, p (5) is the demand function for S, and c(S, N) is the cost function, and S = S(N). While plant breeders usually do not pay for N, because research costs are a function of N, N enters into the cost function directly as well as indirectly. Totally differentiating ti with respect to N yields dn dN

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