. We propose a new mechanism that combines a restrictive license auction with royalty licensing. This mechanism is more … profitable than standard license auctions, auctioning royalty contracts, fixed-fee licensing, pure royalty licensing, and two …-part tariffs. The key features are that royalty contracts are auctioned and that losers of the auction are granted the option to …

, i.e., the first best, is not implementable. Our first main result is that the open ascending auction is not second best … main result is that the second best can be implemented with a two-round auction used in real-life privatizations. We also … show how this result generalizes using a survival auction with a novel tie-breaking rule. …

We analyse how the market design influences the bidding behaviour in multi-unit auctions, such as wholesale electricity …

unallocated. We also highlight how our mechanism can be implemented as an auction with minimum bids and bidding subsidies. …

The literature on license auctions for process innovations in oligopoly assumed that the auctioneer reveals the winning …, partial, and no disclosure of bids, which correspond to standard auctions. We show that more information disclosure increases …

We consider a licensing mechanism for process innovations that combines a license auction with royalty contracts to … those who lose the auction. Firms' bids are dual signals of their cost reductions: the winning bid signals the own cost …

scheme that combines a first-price license auction with royalty contracts for losers. Prior to bidding firms observe … imperfect signals of the expected cost reduction; after the auction the winning bid is made public. Bidders may signal strength … of combining auctions and royalty contracts for losers. …