Patent Licensing in Spatial Models

Yuanzhu Lu () and Sougata Poddar ()

No 2013-08, Working Papers from Auckland University of Technology, Department of Economics

Abstract: We show that a two-part tariff licensing contract is always optimal to the insider patentee in spatial models irrespective of the size of the innovation or any pre-innovation cost asymmetries. The result provides a simple justification of the prevalence of two-part tariff licensing contracts in industries.

Keywords: Salop Model; Hotelling Model; Costs; Innovation; PAtent Licensing (search for similar items in EconPapers)
JEL-codes: D43 D45 L13 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2013-07
New Economics Papers: this item is included in nep-com, nep-ind, nep-ino, nep-ipr, nep-pr~, nep-tid and nep-ure
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Related works:
Journal Article: Patent licensing in spatial models (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:aut:wpaper:201308

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