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Working Papers (1998), ESSEC Business School

The Value of Dependency in Plant Breeding: A Game Theoretic Analysis

This paper analyzes the economic effects of a new piece of legislation called "dependency", introduced in 1991 on a world wide basis in order to better protect the property rights of true innovators in plant breeding. The issue is examined through a game theoretic model featuring competition between two plant breeding firms. This model allows for tracing the genetic oirign of new plant varieties and applies the notion of licensing and continuous genetic capitalization to plant breeding, showing how conditional licensing can influence the breeders' behavior. More practically, the paper shows that the dependency policy deters "plagiarists", encourages high value genetic engineering (biotechnology), and may motivate previously non profitable research in plant breeding.

FAUCHER, H. (1998). The Value of Dependency in Plant Breeding: A Game Theoretic Analysis. ESSEC Business School.