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Drastic innovations and multiplicity of optimal licensing policies

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  • Sen, Debapriya
  • Stamatopoulos, Giorgos

Abstract

Considering the licensing of a drastic cost-reducing innovation by an outside innovator in an n-firm Cournot oligopoly, we show that when the innovator uses combinations of fees and royalties, there are either n - 1 or n optimal licensing policies.

Suggested Citation

  • Sen, Debapriya & Stamatopoulos, Giorgos, 2009. "Drastic innovations and multiplicity of optimal licensing policies," Economics Letters, Elsevier, vol. 105(1), pages 7-10, October.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:1:p:7-10
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    References listed on IDEAS

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    Cited by:

    1. Nicos Savva & Niyazi Taneri, 2015. "The Role of Equity, Royalty, and Fixed Fees in Technology Licensing to University Spin-Offs," Management Science, INFORMS, vol. 61(6), pages 1323-1343, June.
    2. Siyu Ma & Debapriya Sen & Yair Tauman, 2024. "Optimal patent licensing: from three to two part tariffs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 78(4), pages 1233-1273, December.
    3. Huaige Zhang & Xuejun Wang & Xianpei Hong & Qiang (Steven) Lu, 2018. "Technology Licensing in a Network Product Market: Fixed†Fee versus Royalty Licensing," The Economic Record, The Economic Society of Australia, vol. 94(305), pages 168-185, June.
    4. Yan, Yan & Li, Yi, 2023. "Regulation, external R&D, and strategic diffusion of pollution abatement technology," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 731-744.
    5. Sen, Debapriya & Tauman, Yair, 2018. "Patent licensing in a Cournot oligopoly: General results," Mathematical Social Sciences, Elsevier, vol. 96(C), pages 37-48.
    6. Sudipto Bhattacharya & Claude d’Aspremont & Sergei Guriev & Debapriya Sen & Yair Tauman, 2014. "Cooperation in R&D: Patenting, Licensing, and Contracting," International Series in Operations Research & Management Science, in: Kalyan Chatterjee & William Samuelson (ed.), Game Theory and Business Applications, edition 2, chapter 0, pages 265-286, Springer.
    7. Kitagawa, Tatsuya & Masuda, Yasushi & Umezawa, Masashi, 2014. "Patent strength and optimal two-part tariff licensing with a potential rival," Economics Letters, Elsevier, vol. 123(2), pages 227-231.
    8. Yair Tauman & Debrapiya Sen, 2012. "Patents and Licenses," Department of Economics Working Papers 12-05, Stony Brook University, Department of Economics.
    9. Arijit Mukherjee & Yingyi Tsai, 2013. "Technology licensing under optimal tax policy," Journal of Economics, Springer, vol. 108(3), pages 231-247, April.
    10. Marta Montinaro & Rupayan Pal & Marcella Scrimitore, 2020. "Per Unit and Ad Valorem Royalties in a Patent Licensing Game," Working Papers 2020.14, Fondazione Eni Enrico Mattei.
    11. Shin Kishimoto, 2024. "Stable licensing schemes in technology transfer," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 26(1), February.
    12. Montinaro, Marta & Scrimitore, Marcella, 2019. "Per unit and ad valorem royalties in a patent licensing game," MPRA Paper 96642, University Library of Munich, Germany.

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