Patent Licensing in Spatial Models
AbstractWe 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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Bibliographic InfoPaper provided by Auckland University of Technology, Department of Economics in its series Working Papers with number 2013-08.
Length: 11 pages
Date of creation: Jul 2013
Date of revision:
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More information through EDIRC
Salop Model; Hotelling Model; Costs; Innovation; PAtent Licensing;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
- NEP-COM-2013-09-06 (Industrial Competition)
- NEP-IND-2013-09-06 (Industrial Organization)
- NEP-INO-2013-09-06 (Innovation)
- NEP-IPR-2013-09-06 (Intellectual Property Rights)
- NEP-TID-2013-09-06 (Technology & Industrial Dynamics)
- NEP-URE-2013-09-06 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Debapriya Sen & Yair Tauman, 2002.
"General licensing schemes for a cost-reducing innovation,"
Department of Economics Working Papers
02-03, Stony Brook University, Department of Economics.
- 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.
- Sougata Poddar & Uday Bhanu Sinha, 2004.
"On Patent Licensing in Spatial Competition,"
The Economic Record,
The Economic Society of Australia, vol. 80(249), pages 208-218, 06.
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