Once a new technology has been invented, there is a credible threat of imitationwhen patents are long and imitation cost is low. When imitation is credible, the innovator hasan incentive to postpone technology adoption for relatively high cost of imitation. Thepossibility of licensing eliminates...

This paper develops a novel theory linking quantity discounts to bargaining power in scenarios where retailers, organized as a trade association, negotiate uniform wholesale prices with suppliers. Our theory predicts that suppliers offer greater quantity discounts in regional markets where they...