effect - either positive or negative - on the value of the parent brand. Under licensing, this effect is an externality from … the standpoint of the brand owner. The licensing relationship is characterized by double-sided moral hazard, requiring an …Extending a brand beyond its original product category is a major strategy for long-term profitability. A brand owner …

brands frequently use `brand licensing' as a decentralized brand-extension strategy under which a brand licenses its brand …'). On the other hand, over-licensing might dilute the brand for snobs who value brand exclusivity (i.e., `negative … popularity effect'). We develop a game-theoretic model to study luxury brand licensing in the presence of these two …