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The Relationship Between Patent Licensing And Competitive Behavior

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  • ANA I. SARACHO

Abstract

The analysis in this paper uncovers a heretofore unrecognized connection between the degree of competitive behavior in the product market and the preferred patent licensing mechanism. Using conjectural variations as a shorthand for several different supergame outcomes of a duopoly industry, we show that both the degree of competitive behavior and the extent of the asymmetries in the behavior of the firms in the market have a non-trivial effect on the patent licensing mechanism preferred by an external patentee. The relationship between the degree of competition in product markets and the preferred patent licensing mechanism, to the best of our knowledge, has not been addressed in the literature previously and represents a useful source of new empirical implications. Copyright Blackwell Publishing Ltd and The University of Manchester, 2005.

Suggested Citation

  • Ana I. Saracho, 2005. "The Relationship Between Patent Licensing And Competitive Behavior," Manchester School, University of Manchester, vol. 73(5), pages 563-581, September.
  • Handle: RePEc:bla:manchs:v:73:y:2005:i:5:p:563-581
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    Cited by:

    1. San Martín, Marta & Saracho, Ana I., 2010. "Royalty licensing," Economics Letters, Elsevier, vol. 107(2), pages 284-287, May.
    2. Hernandez-Murillo, Ruben & Llobet, Gerard, 2006. "Patent licensing revisited: Heterogeneous firms and product differentiation," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 149-175, January.
    3. Saracho, Ana I., 2011. "Licensing information goods," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 187-199, March.
    4. San Martín Lizarralde, Marta & Saracho de la Torre, Ana Isabel, 2012. "Two-part tariff licensing mechanisms," IKERLANAK Ikerlanak;2012-59, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    5. Marta San Martín & Ana I. Saracho, 2015. "Optimal Two-part Tariff Licensing Mechanisms," Manchester School, University of Manchester, vol. 83(3), pages 288-306, June.
    6. repec:kap:jeczfn:v:121:y:2017:i:3:d:10.1007_s00712-017-0528-6 is not listed on IDEAS
    7. Shaffer, Sherrill & Shogren, Jason F., 2009. "Repeated contests: A general parameterization," Economics Letters, Elsevier, vol. 105(2), pages 159-161, November.
    8. Shuai Niu, 2015. "Privatization in the presence of patent licensing," Journal of Economics, Springer, vol. 116(2), pages 151-163, October.

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