Abstract
Protecting street art faces significant hurdles. To overcome them, Salib, P.N. (2015. The law of Banksy: Who owns street art? The University of Chicago Law Review, pp. 2293–2328) proposes to unbundle the various rights that art ownership usually implies. Specifically, he proposes to treat the finder of a street art piece as a minority shareholder in this piece, granting him some percentage of its value. We provide an economic analysis of this proposal by refining a simple discovery process model involving street art finders and the owners of the premises where street art is found. We consider both the optimal number of researchers and the share of the street art value that should accrue to a finder. We also pay attention to the co-determination of the numbers of seekers and street artists. We find that a change in the share of the value of discovered street art has an ambiguous effect on the numbers of seekers and street artists. Moreover, relying on this share alone cannot guarantee that the equilibrium values of the numbers of seekers and street artists are equal to their socially optimal values.
Acknowledgements
We thank the Editor in Chief, Francesco Parisi, and a referee for helpful comments on a previous version of this work.
Lemma 1
Let s be given such that sR(1) > c. Then there exists a unique equilibrium, i.e., a unique number n e such that
Proof
By assumption sR(1) > c.
Moreover, observe that R(n)/n is decreasing with respect to n. Indeed,
Since R(n) is strictly concave and R(0) = 0, it holds that
which implies that
Lemma 2
Assume that
Proof
Consider the application
Under the assumption that
Proof of Proposition 1
Proof. Totally differentiating the equilibrium conditions (4) and (5) we obtain after a few algebra
Since V
a
is strictly concave
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Artikel in diesem Heft
- Frontmatter
- Articles
- My Study of Law and Economics. An Educational Journey with Knowledgeable Tour Guides
- Consensus and Ideology in Courts: An Application to the Judicial Committee of the Privy Council
- On the Preservation of Illegal Street Art
- Stricter Community Supervision, More Recidivism? An Ego-Depletion Theory
- Collusive Bidding, Competition Law, and Welfare
- Legal Regulation of Taxation of Transnational Corporations in the European Union
Artikel in diesem Heft
- Frontmatter
- Articles
- My Study of Law and Economics. An Educational Journey with Knowledgeable Tour Guides
- Consensus and Ideology in Courts: An Application to the Judicial Committee of the Privy Council
- On the Preservation of Illegal Street Art
- Stricter Community Supervision, More Recidivism? An Ego-Depletion Theory
- Collusive Bidding, Competition Law, and Welfare
- Legal Regulation of Taxation of Transnational Corporations in the European Union