Per Unit and Ad Valorem Royalties in a Patent Licensing Game
Rupayan Pal () and
No 307305, FACTS: Firms And Cities Towards Sustainability from Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability
In a context of product innovation, we study two-part tariff licensing between a patentee and a potential rival which compete in a differentiated product market characterized by network externalities. The latter are shown to crucially affect the relative profitability of Cournot vs. Bertrand when a per unit royalty is applied. By contrast, we find that Cournot yields higher profits than Bertrand under ad valorem royalties, regardless of the strength of network effects.
Keywords: Production; Economics (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-gth, nep-ipr and nep-mic
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)
Working Paper: Per Unit and Ad Valorem Royalties in a Patent Licensing Game (2020)
Working Paper: Per unit and ad valorem royalties in a patent licensing game (2020)
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:ags:feemff:307305
Access Statistics for this paper
More papers in FACTS: Firms And Cities Towards Sustainability from Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().