Exclusive versus non-exclusive licensing strategies and moral hazard
AbstractAn upstream firm can license its innovation to downstream firms that have to exert further development effort. There are situations in which more licenses are sold if effort is a hidden action. Moral hazard may thus increase the probability that the product will be developed.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 97 (2007)
Issue (Month): 3 (December)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Schmitz, Patrick W., 2007. "Exclusive versus Non-exclusive Licensing Strategies and Moral Hazard," CEPR Discussion Papers 6207, C.E.P.R. Discussion Papers.
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
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