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February 07, 2008

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Michael Martin

Molly,

It's easy right now to see the notice and information costs and problems of the future (to which Breyer's hypos allude).

What's harder to see is how (and how fast) these will decrease over the next ten years thanks to new technology. In the patent arena, the transaction costs that you've mapped out have already dropped (and are dropping at an accelerating rate) thanks to the wider availability of patent disclosures and search algorithms.

Could you say something about how we could build some empirical release valve into any rule that we come up with that takes account of decreasing transaction costs?

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