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Patent Licensing in Spatial Models

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Author Info

  • Yuanzhu Lu

    (China Economics and Management Academy, Central University of Finance and Economics, China)

  • Sougata Poddar

    (Department of Economics, Faculty of Business and Law, Auckland University of Technology)

Abstract

We show that a two-part tariff licensing contract is always optimal to the insider patentee in spatial models irrespective of the size of the innovation or any pre-innovation cost asymmetries. The result provides a simple justification of the prevalence of two-part tariff licensing contracts in industries.

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File URL: http://www.aut.ac.nz/__data/assets/pdf_file/0003/399504/Economics-WP-2013-08.pdf
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Bibliographic Info

Paper provided by Auckland University of Technology, Department of Economics in its series Working Papers with number 2013-08.

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Length: 11 pages
Date of creation: Jul 2013
Date of revision:
Handle: RePEc:aut:wpaper:201308

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Related research

Keywords: Salop Model; Hotelling Model; Costs; Innovation; PAtent Licensing;

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  1. Sougata Poddar & Uday Bhanu Sinha, 2002. "On Patent Licensing in Spatial Competition," Departmental Working Papers wp0212, National University of Singapore, Department of Economics.
  2. Sen, Debapriya & Tauman, Yair, 2007. "General licensing schemes for a cost-reducing innovation," Games and Economic Behavior, Elsevier, vol. 59(1), pages 163-186, April.
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