Revenue royalties: comment

Marta San Martín () and Ana Saracho

Journal of Economics, 2021, vol. 132, issue 2, No 4, 187-192

Abstract: Abstract We show that the comparison of the two-part licensing mechanisms considered in the San Martín and Saracho (2015) context is exactly identical to that in Colombo and Filippini (J Econ 118:47–76, 2016) context. This means that the results obtained in Colombo and Filippini (J Econ 118:47–76, 2016) when the patentee chooses between per-unit and ad valorem royalties are incorrect. We conclude that when the convexity of the cost function is not too low, the patentee prefers to license by means of a royalty on the value of sales.

Keywords: Cournot oligopoly; Product differentiation; Decreasing returns to scale; Royalties (search for similar items in EconPapers)
JEL-codes: D45 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:132:y:2021:i:2:d:10.1007_s00712-020-00721-9

DOI: 10.1007/s00712-020-00721-9

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