On Licensing Under Bertrand Competition

X. Wang () and Bill Z. Yang

Australian Economic Papers, 1999, vol. 38, issue 2, 106-119

Abstract: This paper considers licensing by an innovating firm to its competitor in a differentiated duopoly with Bertrand competition. A principal finding is that royalty licensing may be superior to fee licensing for the innovating firm both when the innovation is drastic and when the innovation is non‐drastic.

Date: 1999
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