Farrell, Joseph; Shapiro, Carl - Institute of Business and Economic Research (IBER), … - 2007
We analyze patent licensing by a patent holder to downstream technology users. We study how the structure and level of … determining patent validity before licensing, in terms of deadweight loss (ex post) and innovation incentives (ex ante). When … patent times the patent strength, and reviewing validity before licensing would be unproductive (in expected value). But when …