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Optimal Two-Part Tariff Licensing in a Differentiated Mixed Duopoly

Wang Jing () and Yang Fangbai ()
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Yang Fangbai: School of Mathematics, Liaoning Normal University, Dalian116029, China

Journal of Systems Science and Information, 2017, vol. 5, issue 3, 279-288

Abstract: This paper considers the two-part tariff licensing by an innovating firm to its potential competitor in a differentiated mixed duopoly, in which one firm sets a quantity and the other firm charges a price. Based on the development cost incurred by the rival, we derive the optimal behavior of the firms under full information case and partial information case respectively. Information difference on the equilibrium strategies is also investigated.

Keywords: two-part tariff; full information; partial information; mixed duopoly (search for similar items in EconPapers)
Date: 2017
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