We show that, for licensing by an outside innovator in a Cournot oligopoly,royalty licensing can generate higher payoff to the innovator than the fixed-feelicensing and auction if the labor market is unionized...

It is usually believed that innovation increases profits of the firms and alsosocial welfare. In a duopoly model with product innovation, we show that both thesebelieve may go wrong. We show that if the cost of innovation is not very large,prisoner’s dilemma occurs under product innovation,...