Technology Licensing in a Differentiated OligopolyInternational Review of Economics and Finance (2014)
We show the effects of product differentiation and product market competition on technology licensing by an outside innovator. For a certain range of product differentiation, both the innovator and the society prefer royalty licensing compared to auction (or fixed-fee), irrespective of Cournot and Bertrand competition, if the number of potential licensees is sufficiently large. Hence, for such a range of product differentiation, neither the innovator nor the antitrust authority requires information about the type of product market competition in preferring the type of the licensing contract.
Publication DateJanuary, 2014
Citation InformationBagchi, A. and A. Mukherjee. 2014. Technology licensing in a differentiated oligopoly. International Review of Economics & Finance 29: 455-465.