Licensees as Entry Barriers
AbstractIn a more general setting than has been considered hitherto, this paper examines how the incumbent in a market threatened by entry can exploit its first-mover advantage by licensing its technology not to a potential entrant but to firms that would have remained outside the industry. It is shown, among other things, that the incumbent may subsidize the variable costs of its licensees in order to deter entry. Even when entry is not deterred, it is demonstrated that the incumbent might opt to invite outsiders as licensees.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 27 (1994)
Issue (Month): 3 (August)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yi, Sang-Seung, 1999. "Entry, licensing and research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 17(1), pages 1-24, January.
- Aidan Hollis, 2003. "The Anti-Competitive Effects of Brand-Controlled "Pseudo- Generics" in the Canadian Pharmaceutical Market," Canadian Public Policy, University of Toronto Press, vol. 29(1), pages 21-31, March.
- Kim, YoungJun & Vonortas, Nicholas S., 2006. "Technology licensing partners," Journal of Economics and Business, Elsevier, vol. 58(4), pages 273-289.
- Preet S Aulakh & Marshall S Jiang & Yigang Pan, 2010. "International technology licensing: Monopoly rents, transaction costs and exclusive rights," Journal of International Business Studies, Palgrave Macmillan, vol. 41(4), pages 587-605, May.
- X. Henry Wang & Judy Hsu, 2004.
"On the Licensing of Innovations under Strategic Delegation,"
AccessEcon, vol. 12(6), pages 1-10.
- X. Henry Wang & Judy Hsu, 2004. "On the Licensing of Innovations under Strategic Delegation," Working Papers 0416, Department of Economics, University of Missouri, revised 23 Dec 2004.
- repec:ebl:ecbull:v:12:y:2004:i:6:p:1-10 is not listed on IDEAS
- Nisvan Erkal, 2004.
"Optimal Licensing Policy in Differentiated Industries,"
Department of Economics - Working Papers Series
894, The University of Melbourne.
- Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, 03.
- Laura Magazzini & Fabio Pammolli & Massimo Riccaboni, 2004. "Dynamic competition in pharmaceuticals," The European Journal of Health Economics, Springer, vol. 5(2), pages 175-182, May.
- Aidan Hollis, 2002. "Strategic Implications of Learning by Doing," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 9(2), pages 157-174.
- Eiji Horiuchi & Jota Ishikawa, 2007.
"Tariffs and Technology Transfer through an Intermediate Product,"
2007-15, School of Economics, The University of New South Wales.
- Eiji Horiuchi & Jota Ishikawa, 2009. "Tariffs and Technology Transfer through an Intermediate Product," Review of International Economics, Wiley Blackwell, vol. 17(SI), pages 310-326, 05.
- YoungJun Kim & Nicholas S. Vonortas, 2006. "Determinants of technology licensing: the case of licensors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 235-249.
- Aidan Hollis, 1996. "Subsidizing the Competition," Working Papers ecpap-96-02, University of Toronto, Department of Economics.
- Mottner, Sandra & Johnson, James P., 2000. "Motivations and risks in international licensing: a review and implications for licensing to transitional and emerging economies," Journal of World Business, Elsevier, vol. 35(2), pages 171-188, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.