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Mixed Competition and Patent Licensing

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  • Ray-Yun Chang
  • Yan-Shu Lin
  • Jin-Li Hu

Abstract

type="main"> This paper studies the patent licensing decision of an insider patentee when two firms engage in a mixed (Cournot–Bertrand or Bertrand–Cournot) competition where one firm adopts the quantity strategy while the other uses the price strategy and vice versa. If either the fixed fee or royalty is applied, then the licensor prefers the fixed fee when the licensor takes the quantity strategy, while the licensee uses the price strategy (Cournot–Bertrand). If the two-part tariff is applied, then the two-part tariff is more likely to be adopted by the licensor under Cournot–Bertrand than under Bertrand–Cournot competition.

Suggested Citation

  • Ray-Yun Chang & Yan-Shu Lin & Jin-Li Hu, 2015. "Mixed Competition and Patent Licensing," Australian Economic Papers, Wiley Blackwell, vol. 54(4), pages 229-249, December.
    • Handle: RePEc:bla:ausecp:v:54:y:2015:i:4:p:229-249
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    File URL: http://hdl.handle.net/10.1111/1467-8454.12052
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    References listed on IDEAS

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    Cited by:

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    2. Yan, Qingyou & Yang, Le, 2018. "Optimal licensing in a differentiated Bertrand market under uncertain R&D outcomes and technology spillover," Economic Modelling, Elsevier, vol. 68(C), pages 117-126.

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