We consider a homogenous good Cournot duopoly, in which a firm owns acost-reducing technology and has a non-controlling share over its rival. Weshow that partial passive ownership holdings may induce licensing via afixed fee and increase consumer surplus, tax revenues, and social...

In industries where a patent system is in place, licensing agreements among competing firms often create distortions, as they involve royalties. Royalties are generally considered to be anti-competitive as they raise market prices and reduce consumer welfare. In this paper we propose simple tax...

There is considerable debate regarding the use of intellectual property rights (IPR) to spur innovation in the software industry. In this paper we focus on the choice of intellectual property right regimes and industry growth. We begin by developing a growth optimal mixture of open source and...