How to license a public licensor's technology to an asymmetric duopoly

Authors

  • Takeshi Ebina Tokyo University of Science
  • Shin Kishimoto Tokyo Institute of Technology

DOI:

https://doi.org/10.17811/ebl.1.2.2012.16-26

Abstract

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

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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.

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Published

2012-07-02

How to Cite

Ebina, T., & Kishimoto, S. (2012). How to license a public licensor’s technology to an asymmetric duopoly. Economics and Business Letters, 1(2), 16-26. https://doi.org/10.17811/ebl.1.2.2012.16-26

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Section

Articles