Optimal Licensing in a Spatial Model
Abstract
This paper studies, in a spatial model. optimal licensing policies by first, comparing our results with the standard (non-spatial) licensing literature, and second, how results are affected if the patent holder can introduce a vertical restraint (exclusive territories). Contrary to standard results we find that royalties are superior to fees. Once the licensor introduces an ET clause, his profits are higher than when he uses either fees or royalties only. A conflict between private and social interests arises since consumers are better off when the technology is licensed via fees.Download Info
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1994031.Length:
Date of creation: 01 Jul 1994
Date of revision:
Handle: RePEc:cor:louvco:1994031
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Related research
Keywords: licensing; royalties; fees; exclusive territories;Other versions of this item:
- Francisco CABALLERO-SANZ & Rafael MONER-COLONQUES & José J. SEMPERE-MONERRIS, 2002. "Optimal Licensing in a Spatial Model," Annales d'Economie et de Statistique, ENSAE, issue 66, pages 257-279.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- MAULEON, Ana & VANNETELBOSCH, Vincent & VERGARI, Cecilia, 2010. "Bargaining and delay in patent licensing," CORE Discussion Papers 2010077, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ménière, Yann & Parlane, Sarah, 2008. "Decentralized of licensing of complementary patents: comparing royalty, fixed fee and two part tariff," PIE/CIS Discussion Paper 383, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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