A Macroeconomic Model of Imperfect Competition with Patent Licensing
This paper sets up an imperfectly competitive macroeconomic model that features the strategic interaction between the patent-holding firm and licensees, and uses it to analyze the relevant macro variables under various licensing arrangements. Some main findings emerge from the analysis. First, the equilibrium aggregate output and aggregate consumption under fixed-fee and royalty licensing regimes are always greater than those under the no licensing regime. Moreover, the equilibrium aggregate output and consumption under the fixed-fee licensing regime are always greater than those under the royalty licensing regime. Second, with the higher (lower) technology level the patent-holder prefers the fixed-fee (royalty) contract. Third, welfare could be improved through technology transfer, and the level of welfare under the fixed-fee licensing regime is higher than that under the royalty licensing regime.
|Date of creation:||Aug 2013|
|Contact details of provider:|| Phone: 886-2-27822791|
Web page: http://www.econ.sinica.edu.tw/index.php?foreLang=en
More information through EDIRC
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.:
- Torregrosa, Ramon J., 1998. "On the monotonicity of balanced budget multiplier under imperfect competition," Economics Letters, Elsevier, vol. 59(3), pages 331-335, June.
- Roberto Censolo & Caterina Colombo, 2008. "Mixed Industrial Structure And Short-Run Fiscal Multiplier," Australian Economic Papers, Wiley Blackwell, vol. 47(2), pages 156-165, June.
- Costa, Luís F. & Dixon, Huw David, 2011. "Fiscal policy under imperfect competition with flexible prices: An overview and survey," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 5, pages 1-57.
- Juin-jen Chang & Hsiao-wen Hung & Jhy-yuan Shieh & Ching-chong Lai, 2007. "Optimal Fiscal Policies, Congestion and Over-entry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(1), pages 137-151, March.
- Jaimovich, Nir, 2007.
"Firm dynamics and markup variations: Implications for sunspot equilibria and endogenous economic fluctuations,"
Journal of Economic Theory,
Elsevier, vol. 137(1), pages 300-325, November.
- Nir Jaimovich, 2007. "Firm Dynamics and Markup Variations: Implications for Sunspot Equilibria and Endogenous Economic Fluctuation," Discussion Papers 07-011, Stanford Institute for Economic Policy Research.
- Devereux, Michael B & Head, Allen C & Lapham, Beverly J, 2000. " Government Spending and Welfare with Returns to Specialization," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(4), pages 547-561, December.
- Saracho de la Torre, Ana Isabel & San Martín Lizarralde, Marta, 2009. "Royalty Licensing," IKERLANAK 2009-40, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
- Jhy-hwa Chen & Jhy-yuan Shieh & Ching-chong Lai & Juin-jen Chang, 2005. "Productive public expenditure and imperfect competition with endogenous price markup," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 522-544, July.
- Heijdra, Ben J., 2017. "Foundations of Modern Macroeconomics," OUP Catalogue, Oxford University Press, edition 3, number 9780198784135.
When requesting a correction, please mention this item's handle: RePEc:sin:wpaper:13-a007. 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: (HsiaoyunLiu)
If references are entirely missing, you can add them using this form.