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Optimal licensing strategy of green technology in a mixed oligopoly: Fixed fee versus royalty

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  • Dongdong Li

Abstract

This paper develops a mixed oligopoly model to explore the optimal licensing strategy of green technology. In our model, either private firm or public firm could be the patentee. We show that when the private firm is the patentee, all the two types of licensing contracts (i.e., fixed fee and royalty) are optimal. However, when the public firm is the patentee, the fixed fee licensing is the optimal licensing contract. We examine the welfare consequence of a privatization policy under the optimal licensing contract and show that the privatization policy hinder the improvement of social welfare.

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  • Dongdong Li, 2021. "Optimal licensing strategy of green technology in a mixed oligopoly: Fixed fee versus royalty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 942-951, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:942-951
    DOI: 10.1002/mde.3283
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    Cited by:

    1. Ali Dadpay & Faraz Farhidi & Greg Bell & J. Alejandro Gelves, 2022. "Licensing Innovation in Mixed Multinational Markets with Stackelberg Leadership," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 411-428, December.
    2. Jingpei Ma & Xuejun Sun, 2023. "Green technology licensing: Evaluating government subsidies based on different efficiency levels across competitors," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1920-1934, June.
    3. Ming Chen & Jiao Wu, 2023. "State ownership may not be bad: Based on bibliometric research (2002–2021)," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1285-1304, March.

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