San Martín and Saracho (2010) show that an incumbent, in a duopoly, prefers licensing an innovation through ad-valorem rather than per-unit royalties. In this note, we consider an outsider and oligopoly. We show that an outsider innovator prefers ad-valorem royalties. For an oligopoly that is...

In spring 2000, the British government auctioned off licences for Third Generation mobile telecommunications services. In the preparation of the auction, two designs involving each a hybrid of an English and a sealed-bid auction were suggested by the government: a discriminatory and a uniform...