This paper analyzes optimal cross-licensing arrangements between incumbent firms in the presence of potential entrants …. The optimal cross-licensing royalty rate trades off incentives to sustain a collusive outcome vis-a-vis incentives to … deter entry with the threat of patent litigation. We show that a positive cross-licensing royalty rate, which would …

This paper analyzes optimal cross-licensing arrangements between incumbent firms in the presence of potential entrants …. The optimal cross-licensing royalty rate trades off incentives to sustain a collusive outcome vis-a-vis incentives to … deter entry with the threat of patent litigation. We show that a positive cross-licensing royalty rate, which would …