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Leasing versus selling and firm efficiency in oligopoly

In: Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy

Author

Listed:
  • Kamal Saggi
  • Nikolaos Vettas

Abstract

We examine sales and leasing of a durable good in an asymmetric duopoly. We show that the inefficient firm leases more than the efficient firm, and that an increase in unit costs implies a higher ratio of leased units to sales.

Suggested Citation

  • Kamal Saggi & Nikolaos Vettas, 2023. "Leasing versus selling and firm efficiency in oligopoly," World Scientific Book Chapters, in: Kamal Saggi (ed.), Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, chapter 28, pages 639-646, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813233027_0028
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    More about this item

    Keywords

    International Technology Transfer; Multinational Firms; Trips; Foreign Direct Investment; Oligopolistic Competition; Vertical Contracts; Intellectual Property Rights;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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