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On the possibility of licensing in a market with logit demand functions

Author

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  • Giorgos Stamatopoulos

    (Department of Economics, University of Crete)

Abstract

We analyze the incentives for technology transfer between two firms in a market characterized by a logit demand framework. The available licensing policies of the incumbent innovator are the up front fee, royalty and two-part tariff policies. We show that when the market is covered there is no equilibrium where technology transfer occurs.

Suggested Citation

  • Giorgos Stamatopoulos, 2008. "On the possibility of licensing in a market with logit demand functions," Economics Bulletin, AccessEcon, vol. 4(17), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07d40028
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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