Fan, Cuihong; Chŏn, Pyŏng-hŏn; Wolfstetter, Elmar - 2010
scheme that combines a first-price license auction with royalty contracts for losers. Prior to bidding firms observe … to their rivals through aggressive bidding, which may however backfire and mislead the innovator to set an excessively … high royalty rate. We provide sufficient conditions for existence of monotone bidding strategies and for the profitability …