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Bargaining with a Property Rights Owner

Author

Listed:
  • Yair Tauman

    (Tel Aviv University and Stony Brook University)

  • Andriy Zapechelnyuk

    (Kyiv School of Economics)

Abstract

We consider a bargaining problem where one of the players, the intellectual property rights owner (IPRO) can allocate licenses for the use of this property among the interested parties (agents). The agents negotiate with him the allocation of licenses and the payments of the licensees to the IPRO. We state five axioms and characterize the bargaining solutions which satisfy these axioms. Every solution is characterized by a fraction a. Every agent obtains a weighted average of his individually rational level and his marginal contribution to the set of all players, where the weights are a and 1-a, respectively, uniformly over all bargaining problems. The IPRO obtains the remaing surplus. The solution for a=1/2 is the nucleolus of a naturally related game in characteristic form.

Suggested Citation

  • Yair Tauman & Andriy Zapechelnyuk, 2008. "Bargaining with a Property Rights Owner," Discussion Papers 1, Kyiv School of Economics.
    • Handle: RePEc:kse:dpaper:1
    Note: Forthcoming in Games and Economic Behavior
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    References listed on IDEAS

    as
    1. Sen, Debapriya & Tauman, Yair, 2007. "General licensing schemes for a cost-reducing innovation," Games and Economic Behavior, Elsevier, vol. 59(1), pages 163-186, April.
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    5. SCHMEIDLER, David, 1969. "The nucleolus of a characteristic function game," LIDAM Reprints CORE 44, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bargaining solution; nucleolus; licensing; property rights;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing

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