Ad-valorem and Royalty Licensing Under Decreasing Returns to Scale
Asian Journal of Business and Management
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Title |
Ad-valorem and Royalty Licensing Under Decreasing Returns to Scale
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Creator |
Mavrommati, Athanasia
Karakitsiou, Athanasia |
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Subject |
Patent Licensing
Royalty Ad-valorem Cournot Duopoly Game Theory |
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Description |
In this paper we study the licensing of a cost reducing innovation by an internal patentee. The analysis considers a Cournot duopoly characterized by non-constant returns to scale. The patentee chooses strategically whether to charge a per-unit or an ad-valorem royalty to the other firm in the industry. Our results indicate that an internal innovator may generate different incentives for his licensing contract depending on the cost reduction imposed by the use of the new technology.
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Publisher |
Asian Online Journals
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Date |
2013-05-07
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion |
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Format |
application/pdf
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Identifier |
https://ajouronline.com/index.php/AJBM/article/view/119
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Source |
Asian Journal of Business and Management; Vol. 1 No. 1 (2013): April 2013
2321-2802 |
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Language |
eng
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Relation |
https://ajouronline.com/index.php/AJBM/article/view/119/115
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