Tariffs, technology licensing and adoption

Hsiu-Li Chen, Hong Hwang, Arijit Mukherjee and Pei-Cyuan Shih

International Review of Economics & Finance, 2016, vol. 43, issue C, 234-240

Abstract: This paper develops a two-country Cournot duopoly model to investigate the implications of international technology licensing. It is shown that if the tariff imposed by the domestic country is high, it is optimal for the foreign firm to adopt an inferior technology for its production when it licenses its most advanced technology to the domestic firm. Such a licensing arrangement may improve welfare of the two countries.

Keywords: Licensing; Technology adoption; Tariffs (search for similar items in EconPapers)
JEL-codes: L13 L24 O33 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:43:y:2016:i:c:p:234-240

DOI: 10.1016/j.iref.2016.02.012

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