Cournot competition among multiproduct firms:specialization through licensing
In a duopoly where each firm produces substitute goods, we show that under process innovation, specialization is the equilibrium attained with cross-licensing. Each firm produces only the good for which it has an advantage. Patent pool extension confirms the results.
|Date of creation:||Dec 2006|
|Date of revision:|
|Publication status:||Published in International Journal of Business and Economics, 5(3), 2006, pp. 201-210.|
|Contact details of provider:|| Web page: http://www.unicatt.it/Istituti/TeoriaEconomica|
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- Mukesh Eswaran, 1994. "Cross-Licensing of Competing Patents as a Facilitating Device," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 689-708, August.
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866, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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The Quarterly Journal of Economics,
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- Shapiro, Carl, 1985. "Patent Licensing and R&D Rivalry," American Economic Review, American Economic Association, vol. 75(2), pages 25-30, May.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
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