IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61786.html
   My bibliography  Save this paper

A Model of Endogenous Market Structure, Innovation, and Licensing in Agricultural Biotechnology

Author

Listed:
  • Anderson, Benjamin
  • Sheldon, Ian M.

Abstract

We develop a model of endogenous market structure and sunk cost R&D investment that allows for the licensing of technology among competitors. Our theoretical model predicts both a greater lower bound to market concentration and higher levels of quality compared to the case without licensing. These result simply that in markets in which licensing and a symmetric R&D costs are prevalent, such as the agricultural biotechnology sector, the ability to license technology generates more concentration among firms but also improves consumer welfare by incentivizing the production of higher quality.

Suggested Citation

  • Anderson, Benjamin & Sheldon, Ian M., 2010. "A Model of Endogenous Market Structure, Innovation, and Licensing in Agricultural Biotechnology," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61786, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea10:61786
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/61786/files/Anderson%20_%20Sheldon.%202010.%20AAEA%20Poster-2.pdf
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61786. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.