IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v84y2025i3p547-566.html
   My bibliography  Save this article

Technology Licensing With Strategic Corporate Social Responsibility in a Vertically Differentiated Duopoly

Author

Listed:
  • Dongdong Li
  • Wenyao Lin
  • Chenxuan Shang

Abstract

In this paper, we study the impact of strategic corporate social responsibility (CSR) activities on the optimal licensing strategy for cost‐reducing technology in a vertically differentiated duopoly. We compare three types of licensing strategies—fixed fee, royalty, and two‐part tariff—under three CSR strategy structures: ST model (only firm 1 adopts a CSR strategy), TS model (only firm 2 adopts a CSR strategy), and SS model (both firms adopt CSR strategies). The results show that the licensor prefers fixed‐fee licensing when it adopts a CSR strategy (i.e., ST and SS) but opts for two‐part tariff licensing when it does not (i.e., TS). We also find that the optimal licensing contract leads to higher social welfare under the CSR compliance strategy than under the mixed CSR strategy. Finally, we show that firms endogenously choose the CSR compliance strategy.

Suggested Citation

  • Dongdong Li & Wenyao Lin & Chenxuan Shang, 2025. "Technology Licensing With Strategic Corporate Social Responsibility in a Vertically Differentiated Duopoly," American Journal of Economics and Sociology, Wiley Blackwell, vol. 84(3), pages 547-566, May.
    • Handle: RePEc:bla:ajecsc:v:84:y:2025:i:3:p:547-566
    DOI: 10.1111/ajes.12620
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajes.12620
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajes.12620?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:84:y:2025:i:3:p:547-566. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.