Patent licensing in spatial models

We show that a two-part tariff licensing contract is always optimal to the insider patentee in spatial models irrespective of the size of the innovation or any pre-innovation cost asymmetries. The result provides a simple justification of the prevalence of two-part tariff licensing contracts in industries.

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Year of publication:	2014
Authors:	Lu, Yuanzhu ; Poddar, Sougata
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 42.2014, C, p. 250-256
Publisher:	Elsevier
Subject:	Salop model \| Hotelling model \| Cost-reducing innovation \| Patent licensing

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010931013