Discriminatory vs. uniform tariffs with international technology licensing

Ray-Yun Chang, Hong Hwang and Cheng-Hau Peng ()

Asia-Pacific Journal of Accounting & Economics, 2016, vol. 23, issue 3, 268-277

Abstract: This paper introduces technology licensing between rival firms into a three-country model to examine how an international technology licensing may upset the welfare ranking between a discriminatory tariff policy and a uniform tariff policy. It is found that a discriminatory tariff policy is inferior to a uniform tariff policy in terms of the social welfare of the importing country or the welfare of the world as a whole if the cost disadvantage of the licensor firm is high. This result is robust even if the licensor firm can engage in R&D investment in the long-run.

Date: 2016
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DOI: 10.1080/16081625.2016.1188451

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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