Fan, Cuihong; Jun, Byoung; Wolfstetter, Elmar - In: International Journal of Game Theory 43 (2014) 1, pp. 215-244
This paper reconsiders the licensing of a common value innovation to a downstream duopoly, assuming firms observe imperfect signals of the cost reduction induced by the innovation. The innovator adopts a direct revelation mechanism and awards an unrestricted license to the firm that reports the...