Free Licensing in a Differentiated Duopoly

Tarun Kabiraj, Rittwik Chatterjee and Srobonti Chattopadhyay

MPRA Paper from University Library of Munich, Germany

Abstract: The present paper discusses the possibility of free licensing in a model of differentiated duopoly. We have shown that given the market size, the degree of product differentiation and the unit cost of input production, free licensing will occur if the transferred technology is not much superior and the market price of input is sufficiently large. If, however, any of market size, input cost or product substitution goes up, the possibility of free licensing will fall. Our result has an important implication in the context of transboundary pollution. The overall welfare under free licensing will be higher unambiguously.

Keywords: Transferred technology; free licensing; product differentiation; input price; cross-border pollution. (search for similar items in EconPapers)
JEL-codes: D43 D45 L13 L24 (search for similar items in EconPapers)
Date: 2020-06-30
New Economics Papers: this item is included in nep-com, nep-ind and nep-ore
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https://mpra.ub.uni-muenchen.de/101984/1/MPRA_paper_101984.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/117622/1/MPRA_paper_101984.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/117622/9/Revised%2 ... tiated%20duopoly.pdf revised version (application/pdf)

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