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Licensing a new product: Fee vs. royalty licensing with unionized labor market

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  • Arijit Mukherjee

Abstract

We show that, for licensing by an outside innovator in a Cournot oligopoly, royalty licensing can generate higher payoff to the innovator than the fixed-fee licensing and auction if the labor market is unionized. This result holds irrespective of the unionization structure.

Suggested Citation

  • Arijit Mukherjee, 2007. "Licensing a new product: Fee vs. royalty licensing with unionized labor market," Discussion Papers 07/03, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:07/03
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    Cited by:

    1. Lin, Yen-Ju, 2022. "Consumer welfare, licensing, and exclusive dealing with vertically- and horizontally-differentiated products," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 147-158.
    2. Bagchi, Aniruddha & Mukherjee, Arijit, 2014. "Technology licensing in a differentiated oligopoly," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 455-465.
    3. Mukherjee, Arijit, 2013. "Endogenous domestic market structure and the effects of a trade cost reduction in a unionised industry," Economic Modelling, Elsevier, vol. 32(C), pages 30-33.
    4. Li, Hai & Qing, Qiankai & Wang, Juan & Hong, Xianpei, 2021. "An analysis of technology licensing and parallel importation under different market structures," European Journal of Operational Research, Elsevier, vol. 289(1), pages 132-143.

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