Patent Licensing in Spatial Models

We show that a two-part tariff licensing contract is always optimal to the insider patentee in spatial models irrespective of the size of the innovation or any pre-innovation cost asymmetries. The result provides a simple justification of the prevalence of two-part tariff licensing contracts in industries.

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Year of publication:	2013-07
Authors:	Lu, Yuanzhu ; Poddar, Sougata
Institutions:	Faculty of Business, Auckland University of Technology
Subject:	Salop Model \| Hotelling Model \| Costs \| Innovation \| PAtent Licensing

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2013-08 11 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D45 - Rationing; Licensing ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010690299