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The Optimal Licensing Policy

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  • Shuai Niu

Abstract

type="main"> In this paper, we discuss the optimal public policy towards two-part tariff licensing, under the assumption that the government intervenes in licensing by setting an upper limit on the royalty level. Compared with the traditional constraint on licensing, the new derived licensing policy in this paper will bring two kinds of welfare improvement. First of all, when licensing is welfare reducing the new policy can prevent it from happening. Second, when licensing is potentially welfare improving the new policy can take full advantage of its benefits.

Suggested Citation

  • Shuai Niu, 2014. "The Optimal Licensing Policy," Manchester School, University of Manchester, vol. 82(2), pages 202-217, March.
    • Handle: RePEc:bla:manchs:v:82:y:2014:i:2:p:202-217
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    File URL: http://hdl.handle.net/10.1111/manc.12007
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    References listed on IDEAS

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    1. Uday Bhanu Sinha, 2010. "Strategic licensing, exports, FDI, and host country welfare," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 114-131, January.
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    5. Nisvan Erkal, 2005. "Optimal Licensing Policy in Differentiated Industries," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 51-60, March.
    6. Shapiro, Carl, 1985. "Patent Licensing and R&D Rivalry," American Economic Review, American Economic Association, vol. 75(2), pages 25-30, May.
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    Cited by:

    1. Stefano Colombo & Luigi Filippini, 2016. "Revenue royalties," Journal of Economics, Springer, vol. 118(1), pages 47-76, May.

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