This paper develops a three-stage model of innovation, fixed-fee licensing and production to evaluate the welfare … effects of compulsory licensing, taking into account both static (information sharing) and dynamic (innovation incentive … an ambiguous effect on total welfare, but it is more likely to increase total welfare in industries which are naturally …

, We show that, in presence of licensing, the incentive for innovation may also be stronger under decentralized unions …

are more likely to give rise to patent portfolio races. We also discuss the welfare implications of these results. …Licensing in a patent thicket allows firms to either avoid or resolve hold-up. Firms' R&D incentives depend on whether … they license ex ante or ex post. We develop a model of a patent portfolio race, which allows for endogenous R&D efforts, to …