Shuai Niu ()
Additional contact information
Shuai Niu: Shandong University
Journal of Economics, 2017, vol. 121, issue 3, 267-278
Abstract Profit-sharing licensing is quite a common business practice. In a Cournot duopoly model, we showed that if not subject to any restrictions this kind of technology for equity deal would lead to a decline in industry output and hurt consumers. To avoid the industry output contraction and protect the interests of consumers, the government can intervene in licensing by requiring that the profit-sharing rate specified by a licensing contract should not exceed the percentage difference of involved firms’ equilibrium outputs before licensing.
Keywords: Technology; Equity; Licensing; Welfare; Policy (search for similar items in EconPapers)
JEL-codes: L13 L24 L41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00712-017-0528-6 Abstract (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:121:y:2017:i:3:d:10.1007_s00712-017-0528-6
Access Statistics for this article
Journal of Economics is currently edited by Giacomo Corneo
More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().