We study the licensing of a cost-reducing innovation in a Cournot oligopoly where an outside innovator uses three part tariffs that are combinations of upfront fees, per unit royalties and ad valorem royalties. Under general demand, the maximum possible licensing revenue under three part tariffs...

For an outside innovator with a finite number of buyers of the innovation, this paper compares two licensing schemes: (i) fixed fee, in which a licensee pays a fee to the innovator and (ii) ad valorem profit royalty, in which a licensee leaves a fraction of its profit with the innovator. We show...

For an outside innovator with a finite number of buyers of the innovation, this paper compares two licensing schemes: (i) fixed fee, in which a licensee pays a fee to the innovator and (ii) ad valorem profit royalty, in which a licensee leaves a fraction of its profit with the innovator. We show...

This paper proposes simple tax policies that can alleviate the distortive effects of royalties. We consider a Cournot duopoly under decreasing returns where one of the firms has a patented technology that it can license to its rival using combinations of royalties and fixed fees. Under optimal...

Creative Destruction is the name Joseph Schumpeter gave to a significant change in technology which dislodges old technology into new technology and which leads to increasing economic growth and higher standards of living. This paper proposes that the current New Economy, or the App, Gig,...

In May 2018, hundreds of websites located outside the European Union (EU), including USAToday.com, became completely or partially unavailable to EU citizens as a number of publishers decided to comply with an EU data protection regulation (GDPR) by blocking access. Several of the sites that...