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Licensing under Asymmetric information

Author

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  • Arijit Mukherjee

    (Keele University)

Abstract

In a world with private information about the quality of technology we find that there are situations where relatively more technologically superior firm will license its technology but relatively less technologically superior firm will not license its technology. This finding is opposite to the result found on licensing under complete information. Further, we show that under incomplete information welfare could be higher than under complete information.

Suggested Citation

  • Arijit Mukherjee, 2002. "Licensing under Asymmetric information," Industrial Organization 0211007, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0211007
    Note: Type of Document - pdf; prepared on pc; pages: 18
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    References listed on IDEAS

    as
    1. Rockett, Katharine, 1990. "The quality of licensed technology," International Journal of Industrial Organization, Elsevier, vol. 8(4), pages 559-574, December.
    2. Nancy T. Gallini & Ralph A. Winter, 1985. "Licensing in the Theory of Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(2), pages 237-252, Summer.
    3. Michael L. Katz & Carl Shapiro, 1985. "On the Licensing of Innovations," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 504-520, Winter.
    4. Schmitz, Patrick W., 2002. "On Monopolistic Licensing Strategies under Asymmetric Information," Journal of Economic Theory, Elsevier, vol. 106(1), pages 177-189, September.
    5. Arijit Mukherjee, 2001. "Technology transfer with commitment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 17(2), pages 345-369.
    6. Nancy T. Gallini & Brian D. Wright, 1990. "Technology Transfer under Asymmetric Information," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 147-160, Spring.
    7. Beggs, A. W., 1992. "The licensing of patents under asymmetric information," International Journal of Industrial Organization, Elsevier, vol. 10(2), pages 171-191, June.
    8. Marjit, Sugata, 1990. "On a non-cooperative theory of technology transfer," Economics Letters, Elsevier, vol. 33(3), pages 293-298, July.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asymmetric information; Licensing; Welfare;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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