This paper examines the optimal licensing scheme when the number of licensees is determined endogenously. We demonstrate that a license holder obtains monopoly profit even if the license holder uses only a fixed fee as long as the marginal cost is constant. Furthermore, we show that under free...

This study considers the anti-competitive effect of fixed-fee pricing, such as the one seen in a recent antitrust case in Japan. We show that fixed-fee pricing has stronger exclusionary effect than the per-use pricing's exclusionary effect. However, the restriction on usage of fixed-fee pricing...

This paper examines the effects of exclusive dealing contracts offered by an incumbent distributor to an incumbent manufacturer with entrants in both manufacturing and distribution sectors. It is well-known that a potential entry threat is welfare increasing under homogenous price competition,...