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Licensing under Asymmetric information

Author

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  • Arijit Mukherjee

    (Keele University, Department of Economics)

Abstract

In a world with private information about the quality of technology we find that there are situations where relatively more technologically superior firm will license its technology but relatively less technologically superior firm will not license its technology. This finding is opposite to the result found on licensing under complete information. Further, we show that under incomplete information welfare could be higher than under complete information.

Suggested Citation

  • Arijit Mukherjee, 2002. "Licensing under Asymmetric information," Keele Economics Research Papers KERP 2002/13, Centre for Economic Research, Keele University.
    • Handle: RePEc:kee:kerpuk:2002/13
    as

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    File URL: http://www.keele.ac.uk/depts/ec/wpapers/kerp0213.pdf
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    References listed on IDEAS

    as
    1. Rockett, Katharine, 1990. "The quality of licensed technology," International Journal of Industrial Organization, Elsevier, vol. 8(4), pages 559-574, December.
    2. Nancy T. Gallini & Ralph A. Winter, 1985. "Licensing in the Theory of Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 237-252, Summer.
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    4. Schmitz, Patrick W., 2002. "On Monopolistic Licensing Strategies under Asymmetric Information," Journal of Economic Theory, Elsevier, vol. 106(1), pages 177-189, September.
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    6. Nancy T. Gallini & Brian D. Wright, 1990. "Technology Transfer under Asymmetric Information," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 147-160, Spring.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asymmetric information; Licensing; Welfare;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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