if M8j 2

if Mf 3

Comparison of /I/'Jl to J/J 3 with yJ/J'l to M"j 3 suggests that, under a monopoly, adoption of GMVj is greater (smaller) than adoption of the generic GMV if the gain in marginal revenues of the GMV

there may be a situation when adoption of GMVj will be less than that of the generic variety.

There can be different reasons why rights cannot be freely traded. Lack of IPR protection may prevent the innovator from trading because it is difficult to enforce compliance of licensing agreements. A similar situation might occur when IPRs are strong but high transaction costs hinder a smooth transfer. Due to diverging objective functions, licensing agreements can be difficult to negotiate for the private innovator, especially when germplasm is owned by the public sector.

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