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License fees in oligopoly when outside innovator can enter the market: two-step auction

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  • Hattori, Masahiko
  • Tanaka, Yasuhito

Abstract

When an outside innovating firm has a cost-reducing technology, it can sell licenses of its technology to incumbent firms, or enter the market and at the same time sell licenses, or enter the market without license. We examine the definitions of license fees in such situations under oligopoly with three firms, one outside innovating firm and two incumbent firms, considering threat by entry of the innovating firm using a two-step auction.

Suggested Citation

  • Hattori, Masahiko & Tanaka, Yasuhito, 2017. "License fees in oligopoly when outside innovator can enter the market: two-step auction," MPRA Paper 78992, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78992
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    license; entry; oligopoly; innovating firm; two-step auction;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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