Impact of technology development costs on licensing form in a differentiated Cournot duopoly

Tatsuya Kitagawa, Yasushi Masuda, Masashi Umezawa

Research output: Contribution to journalArticle

Abstract

We investigate how the type of innovation, either of product or process, influences the licensing scheme. For product innovation, we consider a licensing scheme for a patent holder of a new product facing a potential rival who may invest in technology innovation and enter the market for the new product. The alternative forms of licensing schemes considered are fixed fees and royalties. We then compare this licensing scheme for product innovation with that for process innovation studied in the literature.

Original languageEnglish
JournalInternational Journal of Economic Theory
DOIs
Publication statusAccepted/In press - 2018 Jan 1

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Keywords

  • Cournot duopoly
  • Fixed-fee licensing
  • Incumbent innovator
  • Product innovation
  • Royalty licensing

ASJC Scopus subject areas

  • Economics and Econometrics

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