We show that both the outside and inside innovators license a new product (or drastic process innovation) to all … of our analysis is that a monopolist producer may prefer technology licensing in a homogeneous goods industry. We also … show that an inside innovator’s incentive for innovation may be higher than that of an outside innovator. Copyright …

We consider a licensing mechanism for process innovations that awards a limited number of unrestricted licenses to … those firms that report the highest cost reductions, combined with royalty licenses to others. Firmsʼ messages are dual … firms, while losersʼ messages influence the royalty rate set by the innovator. We explain why a sufficiently high threshold …

innovation for less than the full length of the patent and that royalty contracts can be used to overcome a time …-consistency problem faced by the innovator. Our results suggest that licensing contracts based on royalty have a longer duration than …We model an innovator's choice of payment scheme and duration as a joint decision in a multi-period licensing game with …

This paper revisits the licensing of a non–drastic process innovation by an outside innovator to a Cournot oligopoly …. We propose a new mechanism that combines a restrictive license auction with royalty licensing. This mechanism is more … profitable than standard license auctions, auctioning royalty contracts, fixed–fee licensing, pure royalty licensing, and two …

This paper revisits the standard analysis of licensing a cost reducing innovation by an outside innovator to a Cournot … oligopoly. We propose a new mechanism that combines elements of a license auction with royalty licensing by granting the losers … royalty licensing. We also take into account that the number of licenses must be an integer, which is typically ignored in the …

We consider a licensing mechanism for process innovations that combines a license auction with royalty contracts to … the royalty rate. We derive conditions for existence of a separating equilibrium, explain why a sufficiently high reserve …

This paper reconsiders the licensing of a common value innovation to a downstream duopoly, assuming a dual licensing … scheme that combines a first-price license auction with royalty contracts for losers. Prior to bidding firms observe … high royalty rate. We provide sufficient conditions for existence of monotone bidding strategies and for the profitability …

innovation for less than the full length of the patent and that royalty contracts can be more profitable than fixed-fee licensing … even in the absence of information asymmetry and risk aversion. Moreover, licensing contracts based on royalty have a …We model an innovator's choice of payment scheme and duration as a joint decision in a multi-period licensing game with …

contract consists of fixed-fee and output royalty. We show that the firms always have the incentive for brand name … collaboration. However, whether the optimal contract will have positive fixed-fee and positive royalty is not immediate and it …

innovator. For a certain range of product differentiation, both the innovator and the society prefer royalty licensing compared …We show the effects of product differentiation and product market competition on technology licensing by an outside … information about the type of product market competition in choosing the type of the licensing contract. …