The Institutional Foundations of Propertry Rights Strategies
Abstract: Abstract – This paper investigates how the institutional environment influences the property rights strategies of firms. The article proposes a heuristic model and defines three strategies for protection of property rights based on the quality of the institutional environment: strategy focused on the legal system, on the establishment of private mechanisms, and on the abandonment of valuable attributes. The study then examines empirical evidence. Specifically, the paper analyzes three cases of protection of property rights on genetically modified (GM) technology in soybean seeds: the US, Brazil, and Argentina. Each case represents, respectively, a strategy as defined by the heuristic model. Overall, this perspective paper develops an approach for examining the appropriation of value, placing itself in the interface between the property rights economics, the strategic analysis and the assessment of the institutional environment.
