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Licensing Policy And Technology Adoption In Standard Setting Organizations

Author

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  • Emanuele Tarantino

Abstract

The standard setting organizations' decisions on licensing policy and standard's technological specification, and the ensuing implications for social welfare are analyzed. The author finds the conditions under which a licensing rule that grants monopoly power to the licensors whose technology is adopted in the standard can be employed by the members of the consortium (ex‐post licensing). Moreover, it is shown that the adoption of ex‐post licensing might lead to the inefficient exclusion of an efficient stand‐alone licensor. Finally, the author discusses the conditions under which a policy of ex‐ante licensing can be less efficient than ex‐post licensing. (JEL K21, L15, L24, L42)

Suggested Citation

  • Emanuele Tarantino, 2015. "Licensing Policy And Technology Adoption In Standard Setting Organizations," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 604-623, January.
  • Handle: RePEc:bla:ecinqu:v:53:y:2015:i:1:p:604-623
    DOI: 10.1111/ecin.12112
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    File URL: https://doi.org/10.1111/ecin.12112
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    Cited by:

    1. Hiroshi Kitamura & Noriaki Matsushima & Misato Sato, 2013. "How Does Downstream Firms' Efficiency Affect Exclusive Supply Agreements?," ISER Discussion Paper 0878r, Institute of Social and Economic Research, Osaka University, revised Sep 2015.
    2. repec:dpr:wpaper:0878 is not listed on IDEAS

    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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