IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v33y2024i5p722-735.html
   My bibliography  Save this article

Environmental technology licensing with multi-product competition in a vertically differentiated duopoly

Author

Listed:
  • Dongdong Li
  • Chenxuan Shang
  • Leonard F.S. Wang
  • Wei-Chiao Huang
  • Zhao-Yong Sun

Abstract

In many polluting industries, firms with high environmental quality (HEQ) products often license their new environmental technology to firms with low environmental quality (LEQ) products. After accepting the licensing arrangement, firms with LEQ products can produce both the HEQ and LEQ products and compete with the licensor. What type of licensing mode is optimal under such circumstance becomes an interesting question and warrants analysis. To analyze this issue, we construct a vertical product differentiation duopoly model with multi-product competition. The results show that two-part tariff licensing is always the optimal strategy for the licensor, and it is the optimal licensing strategy as well to improve the environment and social welfare only when the degree of product environmental quality differentiation is relatively high.

Suggested Citation

  • Dongdong Li & Chenxuan Shang & Leonard F.S. Wang & Wei-Chiao Huang & Zhao-Yong Sun, 2024. "Environmental technology licensing with multi-product competition in a vertically differentiated duopoly," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(5), pages 722-735, July.
    • Handle: RePEc:taf:ecinnt:v:33:y:2024:i:5:p:722-735
    DOI: 10.1080/10438599.2023.2237896
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2023.2237896
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10438599.2023.2237896?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.

    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:taf:ecinnt:v:33:y:2024:i:5:p:722-735. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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.