Leasing versus selling and firm efficiency in oligopoly

Kamal Saggi and Nikolaos Vettas

Chapter 28 in Technology Transfer, Foreign Direct Investment, and the Protection of Intellectual Property in the Global Economy, 2023, pp 639-646 from World Scientific Publishing Co. Pte. Ltd.

Abstract: We examine sales and leasing of a durable good in an asymmetric duopoly. We show that the inefficient firm leases more than the efficient firm, and that an increase in unit costs implies a higher ratio of leased units to sales.

Keywords: International Technology Transfer; Multinational Firms; Trips; Foreign Direct Investment; Oligopolistic Competition; Vertical Contracts; Intellectual Property Rights (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Date: 2023
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