Patent licensing in the presence of a differentiated good

Jiyun Cao and Uday Sinha
Additional contact information
Jiyun Cao: The School of Economics, Nankai University and Collaborative Innovation Center for China Economy, Tianjin, China

No 282, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: The existing literature has considered licensing of a patented innovation either in a homogenous good industry or in a differentiated goods industry. We consider the licensing problem between two firms i.e., licensor and licensee producing the homogenous goods when there is a third firm producing a differentiated good in the market. We find that when the costs of non-innovators are not high, the optimal licensing contract depends on the degree of product differentiation and the innovator has more incentive for innovation when it is an insider than when it is an outsider of this market.

Keywords: licensing; two-part tariff; Cournot oligopoly; homogenous and differentiated goods; incentive for innovation. (search for similar items in EconPapers)
JEL-codes: D43 D45 L13 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2017-12
New Economics Papers: this item is included in nep-bec, nep-com, nep-gth, nep-ind, nep-ino, nep-ipr and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.cdedse.org/pdf/work282.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cde:cdewps:282

Ordering information: This working paper can be ordered from
http://www.cdedse.org/

The price is free.

Access Statistics for this paper

More papers in Working papers from Centre for Development Economics, Delhi School of Economics Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Sanjeev Sharma ().