Can’t replace IP – product market supply and demand
Spulber 14 (Daniel F. Spulber has a PhD in economics from Northwestern University and previously ranked 6th among economics in the United States, “Prices versus Prizes: Patents, Public Policy, and the Market for Inventions,” “Northwestern University School of Law: Law and Economics Series • NO. 14-15,” URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2488095, August 28, 2014)//NTG
Government prizes for inventors would fail to fulfill the functions of IP in product markets. Markets determine the value of goods and services through interaction of supply and demand, and the same applies to inventions. John Stuart Mill (1848, p. 932) explains this clearly: “the reward conferred by it depends upon the invention’s being found useful, and the greater the usefulness, the greater the reward; and because it is paid by the very persons to whom the service is rendered, the consumers of the commodity.”33