In this paper we consider a model of duopoly with differentiated products to examine the welfare effects of a merger between two asymmetric firms. We find that, for quantity competition, the parameter range for welfare-enhancing merger widens if the products are closer substitutes. On the other...

We study inventors' strategic licensing behaviour when there are two generations of technology. The innovations are sequential, with the second invention built on the first. We show that if the market size is large and if the second innovation is relatively significant, the early inventor...