Mukherjee, Arijit; Sinha, Uday Bhanu - In: Economic Theory Bulletin 12 (2024) 1, pp. 17-24
It is commonly believed that licensing of cost reducing technology increases welfare. We show that technology licensing … by an outside innovator may reduce welfare when the technology is not useful for all final goods producers. Technology … licensing reduces welfare if cost reduction by the licensed technology is small and the initial cost difference of the final …
