How to license a public licensor's technology to an asymmetric duopoly
DOI:
https://doi.org/10.17811/ebl.1.2.2012.16-26Abstract
We consider the issue of optimal licensing from the viewpoint of an external public licensor maximizing social welfare. Our principal findings are as follows. Fee licensing is always at least as good as royalty licensing for the public licensor. For small innovations, there exists a subgame perfect equilibrium outcome in which the public licensor licenses his patented technology to only an efficient (low-cost) firm maximizing its profit.
References
Erutku, C. and Richelle, Y. (2007) Optimal licensing contracts and the value of a patent, Journal of Economics and Management Strategy, 16(2), 407-436.
Giebe, T. and Wolfstetter, E. (2008) License auctions with royalty contracts for (winners and) losers, Games and Economic Behavior, 63(1), 91-106.
Kamien, M. I. and Tauman, Y. (1984) The private value of a patent: A game theoretic analysis, Journal of Economics Supplement, 4, 93-118.
Kamien, M. I. and Tauman, Y. (1986) Fees versus royalties and the private value of a patent, Quarterly Journal of Economics, 101(3), 471-491.
Sen, D. and Tauman, Y. (2007) General licensing schemes for a cost-reducing innovation, Games and Economic Behavior, 59(1), 163-186.
Wang, X.H. and Yang, B.Z. (2004) On technology transfer to an asymmetric Cournot duopoly, Economics Bulletin, 4(14), 1-6.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.