In terms of a simple model we show that removal of tariff from a competing foreign brand is likely to expand the size of the domestic industry when income disparities exist. A tariff increases profits of the local monopolist but is capable of cutting down the size of the local industry. After...

The question of an optimal licensing contract in a leadership structure is studied when the patent holder is a non-producer and has three alternative licensing strategies, namely fixed fee, royalty and auction. Assuming once-for-all licensing contracts we show that royalty dominates other modes...

Operational success of a venture firm essentially depends on the cultural compatibility of the partners. This paper draws attention to the country specific cultural characteristics and partner asymmetry as being the fundamental cause of joint venture instability and break down. Given that one...

We study the question of optimal licensing contracts in a leadership structure and discuss the welfare implications. We assume that the size of the innovation is exogenous and the patent holder is a competitor in the product market. Then welfare depends on the types of contracts available and on...