IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v52y2017icp446-456.html
   My bibliography  Save this article

Input price discrimination, technology licensing and social welfare

Author

Listed:
  • Kao, Kuo-Feng
  • Hwang, Hong

Abstract

This paper examines the welfare effect of third-degree input price discrimination in the presence of technology licensing by an outside innovator. It is found that discriminatory pricing induces the innovator to issue more licenses to downstream firms which improves the overall production efficiency of the downstream market and makes discriminatory pricing more socially desirable than uniform pricing. However, if the level of innovation is endogenously determined by the outside innovator, price discrimination suppresses his R&D incentive, which reduces the social welfare and makes the welfare effect of price discrimination ambiguous.

Suggested Citation

  • Kao, Kuo-Feng & Hwang, Hong, 2017. "Input price discrimination, technology licensing and social welfare," International Review of Economics & Finance, Elsevier, vol. 52(C), pages 446-456.
    • Handle: RePEc:eee:reveco:v:52:y:2017:i:c:p:446-456
    DOI: 10.1016/j.iref.2017.03.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056017301855
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2017.03.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Wu, Bin & Cheng, Jing & Qi, Yuqing, 2020. "Tripartite evolutionary game analysis for “Deceive acquaintances” behavior of e-commerce platforms in cooperative supervision," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 550(C).

    More about this item

    Keywords

    Price discrimination; Technology licensing; Vertically related markets; Social welfare;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

    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:eee:reveco:v:52:y:2017:i:c:p:446-456. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    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.