Economic Welfare and the Allocation of Resources for Invention

Arrow, K. J. (1962). Economic Welfare and the Allocation of Resources for Invention. The Rate and Direction of Inventive Activity.

Type

Book chapter

Intellectual base

Review or monograph

Year

1962

Link

https://www.nber.org/books-and-chapters/rate-and-direction-inventive-activity-economic-and-social-factors/economic-welfare-and-allocation-resources-invention

Cited from

communication_media_studies, mathematics

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Information Use License
  • There is no fourth option, and terms that do not choose have chosen the first. A payload that cannot be returned. The obligation exists because deleting the copy does not restore the prior state, and nothing in the structure intervenes at the moment of use — so remedy follows detection, and detection follows the act.

    This sourceStates the irreversibility of disclosure directly: information's "value for the purchaser is not known until he has the information, but then he has in effect acquired it without cost".

• Verifier-Prover Asymmetry
  • The prime also carries its portable warning into the applied setting: the recurring failure is assuming "easily verified" implies "easily found," which can lead a security organisation to over-fund the visible, cheap-to-check work of confirming known issues while starving the invisible, expensive work of discovering new ones — an analogy this entry draws to the long-argued underinvestment of a free-enterprise economy in invention and research, which Arrow attributes to risk, inappropriability, and increasing returns rather than to any find-versus-verify gap.

Verification

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