Green technology licensing under platform selling

Junjun Kong and Feng Yang

Journal of the Operational Research Society, 2021, vol. 73, issue 11, 2451-2464

Abstract: Industrial practice has shown that technology licensing is of great importance to green technology development. This study investigates licensing strategies for green technology under the background of platform selling. We consider an online platform operating through agency selling and two competitive firms one of which is an innovator investing in green technology. The innovator has an option to offer a license for the green technology to its competitor. Using No licensing scenario as a benchmark, we examine two alternative licensing strategies (Fixed-fee licensing vs. Royalty licensing) when the innovator licenses the technology. We find that licensing enhances the optimal green technology level, each firm’s optimal price, and realized demand. Royalty licensing strategy outperforms Fixed-fee licensing strategy from the viewpoint of environmental performance and the innovator’s profitability. Interestingly, we find that product price may decline with production cost, and when the platform charges firms a higher commission rate, the firms will choose a lower product price in some condition. Furthermore, by numerical examples, we observe an increasing commission rate may hurt the platform.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/01605682.2021.1992311 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjorxx:v:73:y:2021:i:11:p:2451-2464

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjor20

DOI: 10.1080/01605682.2021.1992311

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald

More articles in Journal of the Operational Research Society from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().