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 InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6207.
Date of creation: Mar 2007
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Other versions of this item:
- Schmitz, Patrick W., 2007. "Exclusive versus non-exclusive licensing strategies and moral hazard," Economics Letters, Elsevier, vol. 97(3), pages 208-214, December.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-31 (All new papers)
- NEP-COM-2007-03-31 (Industrial Competition)
- NEP-INO-2007-03-31 (Innovation)
- NEP-MIC-2007-03-31 (Microeconomics)
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