We consider a Cournot oligopoly market of firms possessing increasing returns to scale technologies (which may not be identical). It is shown that an external regulating agency can increase total social welfare without running a deficit by offering to subsidize one firm an amount which depends...

We consider a game in coalitional form played by the firms of a Cournot industry and an outside patent holder of a cost-reducing innovation. The worth of a coalition of players is the total Cournot profit of the active firms within this coalition. The number of firms that a coalition activates...

We study the licensing of a quality-improving innovation in a duopoly model with heterogeneous consumers. Firms compete in prices facing a logit demand framework. The innovator is an outsider to the market and sells licenses via up front fee (determined in an auction), royalty or their...