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

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Author Info
Arijit Mukherjee

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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.

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Publisher Info
Paper provided by University of Nottingham, School of Economics in its series Discussion Papers with number 07/03.

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Handle: RePEc:not:notecp:07/03

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Related research
Keywords: Auction; Fixed-fee; Labor union; Licensing; Royalty;

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