Arya, Anil; Mittendorf, Brian - In: Journal of Regulatory Economics 29 (2006) 3, pp. 333-342
This paper examines the role of patent licensing in the age of outsourcing. When firms rely on outsourced inputs, a patent holder’s decision to license has both competitive and supplier pricing effects. By issuing a license, the firm increases competition in the product market. At the same...