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:	2013
Authors:	Lu, Yuanzhu ; Poddar, Sougata
Publisher:	Auckland : Auckland University of Technology (AUT), Faculty of Business, Economics and Law
Subject:	Salop Model \| Hotelling Model \| Costs \| Innovation \| PAtent Licensing

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Series:	Economics Working Paper Series ; 2013/08
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/242522 [Handle] RePEc:aut:wpaper:201308 [RePEc]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D45 - Rationing; Licensing ; L13 - Oligopoly and Other Imperfect Markets
Source:	EconStor

Persistent link: https://www.econbiz.de/10012624244