Patent strength and optimal two-part tariff licensing with a potential rival incorporating ad valorem royalties

Marta San Martín () and Ana Saracho

Economics Letters, 2016, vol. 143, issue C, 28-31

Abstract: We show that an internal patentee may prefer to use ad valorem royalties instead of per-unit royalties in the licensing contract of a new product to a potential rival who may develop a substitute good.

Keywords: Patent licensing; Ad valorem royalty; Per-unit royalty; Differentiated Cournot duopoly (search for similar items in EconPapers)
JEL-codes: D45 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:28-31

DOI: 10.1016/j.econlet.2016.03.006

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