Decentralized licensing of complementary patents: Comparing the royalty, fixed-fee and two-part tariff regimes
This paper explores the decentralized licensing of complementary patents reading on a technology standard. We develop a model in which manufacturers must buy licenses from different patent owners in order to enter the market for differentiated standard-compliant products. We consider three different types of licensing, namely, the fixed-fee, per-unit royalty and two-part tariff regimes, and compare their performances in terms of licensing revenue, price, product variety and welfare. We show that each regime entails different types of coordination failures. We establish that each of them may maximize the licensing revenue depending on the number of licensors, number of potential entrants and product differentiation.
|Date of creation:||May 2010|
|Date of revision:|
|Publication status:||Published in Information Economics and Policy, Elsevier, 2010, 22 (2), pp.178-191. <10.1016/j.infoecopol.2009.10.003>|
|Note:||View the original document on HAL open archive server: https://hal-mines-paristech.archives-ouvertes.fr/hal-00460754|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reiko Aoki; Sadao Nagaoka, 2004.
"The Consortium Standard and Patent Pools,"
Econometric Society 2004 Far Eastern Meetings
788, Econometric Society.
- Aoki, Reiko & Nagaoka, Sadao, 2004. "The Consortium Standard and Patent Pools," Discussion Paper 222, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Reiko Aoki & Sadao Nagaoka, 2004. "The Consortium Standard and Patent Pools," Hi-Stat Discussion Paper Series d04-32, Institute of Economic Research, Hitotsubashi University.
- Kamien, Morton I., 1992. "Patent licensing," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 11, pages 331-354 Elsevier.
- Sougata Poddar & Uday Bhanu Sinha, 2002.
"On Patent Licensing in Spatial Competition,"
Departmental Working Papers
wp0212, National University of Singapore, Department of Economics.
- Chiao, Benjamin & Lerner, Josh & Tirole, Jean, 2007.
"The Rules of Standard Setting Organizations: An Empirical Analysis,"
CEPR Discussion Papers
6141, C.E.P.R. Discussion Papers.
- Benjamin Chiao & Josh Lerner & Jean Tirole, 2007. "The rules of standard-setting organizations: an empirical analysis," RAND Journal of Economics, RAND Corporation, vol. 38(4), pages 905-930, December.
- Chiao, Benjamin & Lerner, Josh & Tirole, Jean, 2006. "The Rules of Standard Setting Organizations: an Empirical Analysis," IDEI Working Papers 388, Institut d'Économie Industrielle (IDEI), Toulouse.
- Benjamin Chiao & Josh Lerner & Jean Tirole, 2005. "The Rules of Standard Setting Organizations: An Empirical Analysis," NBER Working Papers 11156, National Bureau of Economic Research, Inc.
- Sen, Debapriya, 2005. "Fee versus royalty reconsidered," Games and Economic Behavior, Elsevier, vol. 53(1), pages 141-147, October.
- repec:cor:louvrp:-1588 is not listed on IDEAS
- CABALLERO-SANZ, Francisco & MONER-COLONQUES, Rafael & SEMPERE-MONERRIS, José J., .
"Optimal licensing in a spatial model,"
CORE Discussion Papers RP
1588, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x.
- Morton I. Kamien & Yair Tauman, 1986. "Fees Versus Royalties and the Private Value of a Patent," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 471-491.
- Can Erutku & Yves Richelle, 2007. "Optimal Licensing Contracts and the Value of a Patent," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 407-436, 06.
- Nisvan Erkal, 2004.
"Optimal Licensing Policy in Differentiated Industries,"
Department of Economics - Working Papers Series
894, The University of Melbourne.
- Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, 03.
- Kamien, Morton I. & Oren, Shmuel S. & Tauman, Yair, 1992. "Optimal licensing of cost-reducing innovation," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 483-508.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00460754. 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: (CCSD)
If references are entirely missing, you can add them using this form.