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The second solution is to rebuild excludability on contents.
Zucker, Darby, Brewer, and Yusheng Peng [1996] have shown that organizational boundaries serve as informational envelopes within which valuable information characterized by natural excludability is much more likely to be diffused than to those outside the organization.
We have identified up to this stage a number of characteristics that make infrastructures different from conventional economic goods, characteristics such as their impact over a broad range of downstream economic activities, low levels of excludability and rivalry and a high level of externalities.
These examples may seem weird or naive after all these years of technological innovation, but van Zandt is right in pointing out that the problem of excludability is a contingent one.
information goods, which face an excludability problem: Once information
Where Excludability Matters: Material Versus Intellectual Property in Academic Biomedical Research, 36 Res.
That is, even assuming strict excludability (which is a dubious assumption), patenting a social innovation would be unlikely to generate significant revenues and thus incentives for creation.
Amy Kapczynski & Talha Syed, The Continuum of Excludability and the Limits of Patents, 122 YALE L.
Overcoming the Excludability Problem: Closing the Commons 1.
In the last few years, companies increasingly sought guidance from the SEC on the excludability of a variety of new proposal types, especially in the areas of executive compensation and environmental and social policy," says Matteo Tonello, managing director of Corporate Leadership at The Conference Board and coauthor of the report.
The key issue for the present discussion is however rivalry, not excludability.