This article develops an incomplete contract model of the licensing relationship to analyze the dynamic effects of licensing on R&D competition in the innovation market and to examine the rationale for often observed "grant-back" clauses. Of particular concern are how the consideration of future...

This paper develops an incomplete contract model of the licensing relationship to analyze the dynamic effects of licensing on R&D competition in the innovation market and to examine the rationale for often observed grant-back clauses. Of particular concern are how the consideration of future...

Antitrust policy in the United States and Europe relies increasingly on economic analysis. Economic theory and empirical analysis play a central role in antitrust decisions in the courts and in the formulation and enforcement of policy. Antitrust cases are argued using sophisticated economic...