IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v103y1993i417p436-43.html
   My bibliography  Save this article

Asymmetric Oligopoly and Technology Transfers

Author

Listed:
  • La Manna, Manfredi M A

Abstract

Using a simple Cournot model, this paper shows that (1) if technologies are perfectly replicable, then a lower-cost firm has always an incentive to transfer its technology and, as a result, a fully asymmetric oligopoly can never be a noncooperative Nash equilibrium; (2) as a technology transfer between any two firms can always be disrupted by some other firm, the Cournot game cum technology transfer has no noncooperative Nash equilibria in pure strategies; and (3) there exi st nonlinear transfer payments that sustain the fully collusive outcome as an noncooperative Nash equilibrium even in a finitely repeated game. Copyright 1993 by Royal Economic Society.

Suggested Citation

  • La Manna, Manfredi M A, 1993. "Asymmetric Oligopoly and Technology Transfers," Economic Journal, Royal Economic Society, vol. 103(417), pages 436-443, March.
    • Handle: RePEc:ecj:econjl:v:103:y:1993:i:417:p:436-43
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199303%29103%3A417%3C436%3AAOATT%3E2.0.CO%3B2-%23&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hattori, Masahiko & Tanaka, Yasuhito, 2016. "License or entry in oligopoly," MPRA Paper 73547, University Library of Munich, Germany.
    2. Masahiko Hattori & Yasuhito Tanaka, 2018. "License and Entry Strategies for an Outside Innovator Under Duopoly with Combination of Royalty and Fixed Fee," Journal of Industry, Competition and Trade, Springer, vol. 18(4), pages 485-502, December.
    3. Leon Yang Chu & Yunzeng Wang, 2015. "Bundled Procurement for Technology Acquisition and Future Competition," Manufacturing & Service Operations Management, INFORMS, vol. 17(2), pages 249-261, May.
    4. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "Royalty and license fee under vertical differentiation in oligopoly with or without entry of innovator: Two-step auction," MPRA Paper 78859, University Library of Munich, Germany.
    5. Masahiko Hattori & Yasuhito Tanaka, 2018. "License and Entry Strategies for an Outside Innovator Under Duopoly," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 135-152, March.
    6. Masahiko Hattori & Yasuhito Tanaka, 2017. "Competitiveness of Firm Behavior and Public Policy for New Technology Adoption in an Oligopoly," Journal of Industry, Competition and Trade, Springer, vol. 17(2), pages 135-151, June.
    7. Ding, Rong & Ko, Chiu Yu, 2021. "Does licensing improve welfare with rent dissipation?," Economic Modelling, Elsevier, vol. 105(C).
    8. Masahiko Hattori & Yasuhito Tanaka, 2016. "License or entry with vertical differentiation in duopoly," Economics and Business Letters, Oviedo University Press, vol. 5(1), pages 17-29.
    9. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "Vertical differentiation in oligopoly and license fees when outside innovator can enter the market: Two-step auction," MPRA Paper 78987, University Library of Munich, Germany.
    10. Masahiko Hattori & Yasuhito Tanaka, 2020. "License Fees in Oligopoly When Outside Innovator can Enter the Market: Two-Step Auction," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-15, September.
    11. Creane, Anthony & Ko, Chiu Yu & Konishi, Hideo, 2013. "Choosing a licensee from heterogeneous rivals," Games and Economic Behavior, Elsevier, vol. 82(C), pages 254-268.
    12. Chiu Yu Ko & Bo Shen & Xuyao Zhang, 2023. "Can corruption encourage clean technology transfer?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(3), pages 459-492, June.
    13. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "License and entry decision for innovating firm in international duopoly under vertical differentiation," MPRA Paper 78995, University Library of Munich, Germany.
    14. Fan, Cuihong & Jun, Byoung Heon & Wolfstetter, Elmar G., 2018. "Optimal licensing of technology in the face of (asymmetric) competition," International Journal of Industrial Organization, Elsevier, vol. 60(C), pages 32-53.
    15. Masahiko Hattori & Yasuhito Tanaka, 2015. "Subsidy or tax policy for new technology adoption in duopoly with quadratic and linear cost functions," Economics Bulletin, AccessEcon, vol. 35(2), pages 1423-1433.
    16. Masahiko Hattori & Yasuhito Tanaka, 2020. "Entry of Innovator and License in Oligopoly," Journal of Industry, Competition and Trade, Springer, vol. 20(4), pages 709-731, December.
    17. Masahiko Hattori & Yasuhito Tanaka, 2016. "Subsidizing New Technology Adoption in a Stackelberg Duopoly: Cases of Substitutes and Complements," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(2), pages 197-215, July.
    18. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "License and entry strategies for outside innovator in duopoly," MPRA Paper 76444, University Library of Munich, Germany.
    19. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "License and entry strategies for an outside innovator in duopoly with combination of royalty and fixed fee under vertical differentiation," MPRA Paper 78856, University Library of Munich, Germany.
    20. Hattori, Masahiko & Tanaka, Yasuhito, 2017. "Royalty and license fee under oligopoly with or without entry of innovator: Two-step auction," MPRA Paper 78858, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:103:y:1993:i:417:p:436-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.