Xiao, Wenqiang; Xu, Yi - In: Management Science 58 (2012) 12, pp. 2251-2271
This paper investigates the impact of royalty revision on incentives and profits in a two-stage (research and development (R&D) stage and marketing stage) alliance with a marketer and an innovator. The marketer offers royalty contracts to the innovator. We find that the potential for royalty...