Licensing Cost-Reducing Innovations Under Supply Function Competition
MPRA Paper from University Library of Munich, Germany
In this paper, we study the problem of licensing cost-reducing innovations in a duopoly under supply function competition. We show that the innovator prefers fixed-fee licensing to no licensing if its cost advantage is not extremely large. Moreover, if its cost advantage is not extremely small, the innovator prefers fixed-fee licensing to royalty licensing, as well.
Keywords: Duopoly; licensing; supply function competition. (search for similar items in EconPapers)
JEL-codes: D43 L13 O30 (search for similar items in EconPapers)
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Journal Article: Licensing cost‐reducing innovations under supply function competition (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107293
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