Transfert de technologie dans une ville carrée à deux dimensions avec cout de transport quadratique

This paper studies and compares licensing regimes of a cost reducing innovation in a two dimensional square city where consumers are located in the interior of the square city and pay a quadratic transport cost when moving to one of the competing firms. The difference between results in this model and results in the other models of the existing literature is that here I find that royalties licensing is always better than fixed fee licensing independently of the size of the innovation. This result contradicts those found in a linear city à la Hotelling and in a circular city à la Salop. However, the paper shows that optimal licensing strategies for the patent holding firm are the same as in a Hotelling model where royalties are better for a non drastic innovation.