Conflicts of Interest - Articles on Common Benefits and Private Profits

This dissertation is concerned with three different topics, each of which is treated in a separate, self-contained article. Their underlying connection is contained in the quote above, as they apply the methods of social science – mi- croeconomic theory and micro-econometrics – to questions related to “grown”, or in one case “growing” institutions. In Chapter 2, I address troubles that patent systems are facing to a large and increasing degree, such as the deval- uation of patents due to badly specified claims and property rights and the ensuing central role that courts play in the patent system in the context of a game-theoretic model. While the patent system can be considered a venerable institution, in Chapter 3 I turn my attention to a young and budding one: Online social networks. Making use of a unique data set, in collaboration with Steffen Reik I try to explore whether the existing economic theory on social networks can assist us in understanding the forces that shape user behavior within. One of the central findings is the importance of social norms in this en- vironment. In Chapter 4, which was developed working together with Leonardo Felli and Konrad Stahl, the aim is to show how a specific social norm, trust, shapes the interaction between upstream suppliers and downstream manufac- turers in the automotive industry. I present a game-theoretic model and test its predictions using data from an extensive industry survey we conducted