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Exclusive versus non-exclusive licensing strategies and moral hazard

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  • Schmitz, Patrick W.

Abstract

An upstream firm can license its innovation to downstream firms that have to exert further development effort. There are situations in which more licenses are sold if effort is a hidden action. Moral hazard may thus increase the probability that the product will be developed.
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Suggested Citation

  • Schmitz, Patrick W., 2007. "Exclusive versus non-exclusive licensing strategies and moral hazard," Economics Letters, Elsevier, vol. 97(3), pages 208-214, December.
  • Handle: RePEc:eee:ecolet:v:97:y:2007:i:3:p:208-214
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    Cited by:

    1. Ying Yi Tsai & Li-Gang Liu, 2010. "Emergence of Rating Agencies : Implications for Establishing a Regional Rating Agency in Asia," Finance Working Papers 22824, East Asian Bureau of Economic Research.
    2. Sandro Gleave & Eberhard Feess, 2016. "Fixed fee licensing for cost-reducing technologies: Should innovators reveal their private information?," Review of Managerial Science, Springer, vol. 10(4), pages 781-799, October.
    3. Ying Yi Tsai & Li-Gang Liu, 2010. "Emergence of Rating Agencies: Implications for Establishing a Regional Rating Agency in Asia," Working Papers id:2927, eSocialSciences.
    4. Antelo, Manel & Sampayo, Antonio, 2014. "On the number of licenses under symmetric versus asymmetric information with signaling," MPRA Paper 60759, University Library of Munich, Germany.
    5. repec:bla:manchs:v:85:y:2017:i:6:p:635-660 is not listed on IDEAS
    6. Preet S Aulakh & Marshall S Jiang & Yigang Pan, 2010. "International technology licensing: Monopoly rents, transaction costs and exclusive rights," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(4), pages 587-605, May.

    More about this item

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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