Commitment and Excess Capacity with Licensing : An Old Debate with a New Look

The theoretical literature demonstrates that excess capacity is not an equilibrium phenomenon if each firm’s marginal revenue decreases with the competitor's output. We show that such a conclusion can be overturned in the presence of technology licensing. We show that in the presence of technology licensing, a firm may hold excess capacity because it increases the benefit from technology licensing

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Year of publication:	2011
Authors:	Bagchi, Aniruddha ; Mukherjee, Arijit
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| Produktionskapazität \| Production capacity \| Markteintritt \| Market entry \| Technologietransfer \| Technology transfer \| Unvollkommener Markt \| Incomplete market
Description of contents:	Abstract [papers.ssrn.com]