IDEAS home Printed from https://ideas.repec.org/a/kap/jeczfn/v132y2021i2d10.1007_s00712-020-00721-9.html
   My bibliography  Save this article

Revenue royalties: comment

Author

Listed:
  • Marta San Martín

    (University of the Basque Country UPV/EHU
    University of the Basque Country UPV/EHU)

  • Ana I. Saracho

    (University of the Basque Country UPV/EHU
    University of the Basque Country UPV/EHU)

Abstract

We show that the comparison of the two-part licensing mechanisms considered in the San Martín and Saracho (2015) context is exactly identical to that in Colombo and Filippini (J Econ 118:47–76, 2016) context. This means that the results obtained in Colombo and Filippini (J Econ 118:47–76, 2016) when the patentee chooses between per-unit and ad valorem royalties are incorrect. We conclude that when the convexity of the cost function is not too low, the patentee prefers to license by means of a royalty on the value of sales.

Suggested Citation

  • Marta San Martín & Ana I. Saracho, 2021. "Revenue royalties: comment," Journal of Economics, Springer, vol. 132(2), pages 187-192, March.
    • Handle: RePEc:kap:jeczfn:v:132:y:2021:i:2:d:10.1007_s00712-020-00721-9
    DOI: 10.1007/s00712-020-00721-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00712-020-00721-9
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s00712-020-00721-9?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
    ---><---

    Citations

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


    Cited by:

    1. Masashi Umezawa, 2022. "Optimal two-part tariff licensing in a Stackelberg duopoly," Economics Bulletin, AccessEcon, vol. 42(2), pages 629-642.

    More about this item

    Keywords

    Cournot oligopoly; Product differentiation; Decreasing returns to scale; Royalties;
    All these keywords.

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

    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:kap:jeczfn:v:132:y:2021:i:2:d:10.1007_s00712-020-00721-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.