I examine the optimal licensing strategy of the owner of a proprietary technology standard in a monopolistically competitive industry. The standard owner can be either an outsider innovator or a joint venture of downstream firms. I find that (1) a simple revenue royalty replicates the integrated...

I examine firms' aftermarket behavior in the presence of myopic consumers who optimize period-by-period. Paradoxically, a monopolist's profit decreases with the percentage of myopic consumers, whereas competitive firms earn supranormal profits from myopic consumers through the strategic use of...