Journal article
Patent licensing in spatial models
Economic modelling, Vol.42, pp.250-256
10/01/2014
DOI: 10.1016/j.econmod.2014.06.016
Abstract
We show that a two-part tariff licensing contract is always optimal to the insider patentee in spatial models irrespective of the size of the innovation or any pre-innovation cost asymmetries. The result provides a simple justification of the prevalence of two-part tariff licensing contracts in industries.
•Optimal patent licensing is considered in spatial models of Salop and Hotelling.•For the insider patentee optimal license is always a two-part tariff scheme.•Optimal licensing consists of a fixed fee and per-unit royalty.•The result is robust to any drastic or non-drastic innovation or cost asymmetries.•Provides a justification of the prevalence of two-part tariff licensing in reality.
Details
- Title: Subtitle
- Patent licensing in spatial models
- Creators
- Yuanzhu Lu - Central University of Finance and EconomicsSougata Poddar - Auckland University of Technology
- Resource Type
- Journal article
- Publication Details
- Economic modelling, Vol.42, pp.250-256
- DOI
- 10.1016/j.econmod.2014.06.016
- ISSN
- 0264-9993
- eISSN
- 1873-6122
- Publisher
- Elsevier B.V
- Number of pages
- 7
- Grant note
- 71202127 / National Natural Science Foundation of China (http://dx.doi.org/10.13039/501100001809)
- Language
- English
- Date published
- 10/01/2014
- Academic Unit
- Economics
- Record Identifier
- 9984963154202771
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