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Does technology licensing matter for privatization?

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  • Leonard F. S. Wang
  • Arijit Mukherjee
  • Chenhang Zeng

Abstract

In mixed oligopolies, technology licensing from a cost‐efficient firm to a cost‐inefficient firm has been widely observed. This paper examines the relationship between privatization and licensing (by public or private firms) with the consideration of either a domestic or a foreign private firm. We find that (a) in the case of a domestic private firm, public licensing facilitates privatization, but private licensing hinders privatization; (b) in the case of a foreign private firm, both public and private licensing facilitate privatization. Our results yield important policy implications on privatization.

Suggested Citation

  • Leonard F. S. Wang & Arijit Mukherjee & Chenhang Zeng, 2020. "Does technology licensing matter for privatization?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1462-1480, September.
    • Handle: RePEc:bla:jpbect:v:22:y:2020:i:5:p:1462-1480
    DOI: 10.1111/jpet.12431
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    Cited by:

    1. Cho, Sumi & Kim, Doori & Lee, Sang-Ho, 2021. "Free licensing strategy and ex post privatization in a mixed oligopoly," MPRA Paper 106126, University Library of Munich, Germany.
    2. Yi Liu & Leonard F.S. Wang & Chenhang Zeng, 2023. "Upstream privatization and downstream licensing," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(1), pages 148-165, March.
    3. Horn‐In Kuo & Cheng‐Hau Peng & K. L. Glen Ueng, 2021. "On the Neutrality of Profit Taxation in a Mixed Oligopoly," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(5), pages 1012-1021, October.
    4. Yang, Le & Huang, Zining, 2023. "Quality-improving licensing of an outside innovator in a mixed Cournot duopoly," Economic Modelling, Elsevier, vol. 126(C).
    5. Dongdong Li, 2021. "Optimal licensing strategy of green technology in a mixed oligopoly: Fixed fee versus royalty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 942-951, June.
    6. Madhuri H.Shastry & Uday Bhanu Sinha, 2023. "Privatization and Licensing under Public Budget Constraint," Working papers 343, Centre for Development Economics, Delhi School of Economics.
    7. Xu, Lili & Lee, Sang-Ho, 2020. "Strategic Relations between Corporate Social Responsibility and Partial Privatization Policy with Foreign Penetration," MPRA Paper 100770, University Library of Munich, Germany.
    8. Purnomo, Agung, 2022. "Desa Wirausaha sebagai Eskalasi Ekonomi Desa berbasis Kewirausahaan," OSF Preprints np629, Center for Open Science.
    9. Liu Yao & Mukherjee Arijit, 2024. "Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 117-139, January.
    10. Heng, Kimkong & Hamid, M. Obaidul & Khan, Asaduzzaman, 2022. "Academics’ conceptions of research and the research-teaching nexus: Insights from Cambodia," International Journal of Educational Development, Elsevier, vol. 90(C).
    11. Cho, Sumi & Kim, Doori & Lee, Sang-Ho, 2022. "Free licensing strategy and ex-post privatization policy with passive ownership," Economic Modelling, Elsevier, vol. 106(C).
    12. Lili Xu & Fanrui Su & Sang-Ho Lee, 2023. "Strategic corporate social responsibility and partial privatization policy with foreign penetration," The Japanese Economic Review, Springer, vol. 74(2), pages 251-278, April.
    13. Ali Dadpay & Faraz Farhidi & Greg Bell & J. Alejandro Gelves, 2022. "Licensing Innovation in Mixed Multinational Markets with Stackelberg Leadership," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 411-428, December.

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