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- W4381854955 abstract "This paper studies the licensing of a product innovation in a duopoly by means of two-part tariff contracts composed of fixed-fee payments combined with per-unit or ad-valorem royalties. When the licensor is a firm within the industry (internal licensor), it licenses the innovation to its competitor by using a pure ad-valorem royalty, and welfare is reduced because the royalty has anticompetitive effects on market performance. On welfare grounds, fixed-fee predominates over per-unit royalty licensing, but has the disadvantage that firms sometimes fail to reach an agreement. A simple regulatory rule is then proposed for a second-best optimal policy on product innovation licensing. However, when the innovator is outside the industry (external licensor), it never uses ad-valorem royalties. Also evaluated is the value of the innovation for an internal and an external innovator, and licensing by both innovators under Bertrand competition." @default.
- W4381854955 created "2023-06-25" @default.
- W4381854955 creator A5071448860 @default.
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- W4381854955 date "2023-06-22" @default.
- W4381854955 modified "2023-10-02" @default.
- W4381854955 title "Licensing a product innovation in a duopoly" @default.
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- W4381854955 doi "https://doi.org/10.1080/10438599.2023.2226090" @default.
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