This paper considers general bargaining outcomes under coalition structures formed by an external patent holder and firms in oligopoly markets. The main propositions are as follows. For each coalition structure, the kernel is a singleton; thus, the number of licensees that maximizes the patent...

In this paper, we consider a Cournot duopoly market in which the patent‐holding firm negotiates with its rival firm about payments for licensing a cost‐reducing innovation. Applying the Nash bargaining solution, we compare two licensing policies, a fixed fee and a royalty. Our results are as...