Question

8. Fischel (Takings and Public Choice reading) claimed that land use regulations can lead to excessive government activities. Briefly explain how he justified this claim.

9. Explain why providing trademark protection to producers of goods is efficient. Briefly explain why Frito-Lay challenged the Wilsons “routine move to register the trademark” the term Pretzel Crip.

10. Explain (diagram not required) the economic trade-off involved for society when a discoverer receives a copyright.   Briefly explain if copyright protection provides a Kaldor-Hicks welfare gain or not.

Answer 1

Answer 8.   Fischel

Introduction

basically it states that when the owners of property tend to give there land to the government that could be for any public activity i.e. making roads, constructing highways or dams the compensation recieved is relatively uncontroversial when actions are done and compensation can be done however the alteration in the value of land due to the new construction that time problem arises that government at that time gives comparitively less of compensation

Justification

A very clear and justified real life happening is when enterprises tend to sell houses and plots they tend to give there would be future owners a huge big list of do's and do nots from the basic structure of all housing ,to the identical coloring , parking area and even the motor type that could be parked , the only difference is that private is more detailed than the government- imposed zoing ordiance.

Even many a times in residential area renting houses to students is not allowed although Universities and colleges are near to maintain high value of houses as it will enhance security but will let go the revenue that owner could earn by renting it,to easily came customer i.e. students as of college and university

Answer 9 Providing protection to producer is efficient:

1. It is as return to the producer for the work initiated by them , as every producer had his own way of working which makes him different and which makes them money so to protect it , protection is needed
2. Many times other players might adapt same technique of other and start earning more this is not justified to the company from whom the technique is been copied so , protection is needed
3. Owing to immense competition and financial requirements they should be given protection

However coming to Wilson's struggles to establish itself in the industry is nothing hidden ,surprise came to them when 'what they thought was a routine move to register the trademark of hot their hot product' were Pretzel Crisps and was challenged by Frito - Lays, a snack food market owner by PepsiCo. For which Wilson said that such a big company was actually not competing rather wanted to crush there existence in society

Playing on same Frito-Lays contented that Prestel Crisps cannot be registered as it's a GENERIC NAME . They did so , to push out Wilson's company from the market and establish itself as the main player.As fighting for trademark for small company can drain all there wealth and for Prestel Crisps it costed $1 million. Making Wilson busy in this, Frito-Lays cleared his product from market and made huge sales of Frito- Lays

Answer 10 Introduction

The idology behind the trade off is very simple which is done in society's interest as they get benefits from production. However ,no proper cost-benefit analyses is done of them.

The traditional copyright has always been a question that what is the balance between the private and public interest in these. Where much said is that a BAD COPYRIGHT will enhance the incentives to copyright holder than doing any much good to maximise the creative production however they overlook those which have been made out of lobbying groups do worse than skewed

Kaldor and Hicks welfare gain

They work along with the Pareto Improvement, as per it the people who are better off should be able to hypothetically compensate to those who are worse off bringing Pareto improving outcome in reality as such doing no improvment

No with COPYRIGHTS , the better off are the producers who however tend to say in the society trade off will COMPENSATE AS MEANS OF CREATIVE PRODUCTION , which will result in Pareto improving outcome but the true picture is been hidden the name of CREATIVE PRODUCTION that as such nothing is made or done to make society actually better off.

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