Heywood, John S.; Li, Jianpei; Ye, Guangliang - In: International Journal of Industrial Organization 37 (2014) C, pp. 38-46
We study an inside patent holder's optimal licensing policy when it has imperfect information about the value of the patent to its rival. The patent holder can choose any two-part licensing fee with either per unit or ad valorem royalties. We demonstrate that the equilibrium will be either a...