| In the early days of navigation, sailors had a tough time figuring out exactly where they were. Pinpointing latitude was easy enough with a sextant, but because the earth was constantly spinning, pinpointing longitude by using celestial bodies was impossible. Anxious for a solution to this problem, the British government sponsored a contest with a prize of £20,000 (about $5 million in today’s dollars) to the inventor who could devise a reliable method of calculating longitude. Once invented, the method would be made available to anybody who wanted to use it. Explain the advantages of such a system in maximizing social well-being relative to the traditional system of awarding patents. |
