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    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/78208

    Title: Fee versus Royalty Licensing in Bertrand Competition in the Presence of Trade Barriers
    Authors: Liang, Wen-jung;Tseng, Ching-chih
    Contributors: 淡江大學產業經濟學系
    Keywords: Fixed-fee Licensing;Royalty Licensing;Bertrand Competition;Trade Barriers
    Date: 2009
    Issue Date: 2012-09-12 17:52:03 (UTC+8)
    Publisher: Taipei, Taiwan: Department of Industrial Economics, Tamkang University
    Abstract: This paper develops a barbell model to take into account trade barriers in exploring the outside patentee's optimal licensing policy under Bertrand competition with homogenous product. Four different contracts, royalty and fixed-fee with exclusive or non-exclusive licensing, are considered. The focus of the paper is on the impact of local monopoly rent generated by trade barriers. It shows that fixed-fee licensing is superior to royalty licensing under Bertrand competition, as trade costs are high irrespective of drastic or non-drastic innovation. It also shows that the outside patentee would select fixed-fee with non-exclusive licensing, as innovation is non-drastic or drastic innovation with sufficiently high trade costs.
    Relation: 2009 International Conference on Trade, Industrial and Regional Economics, 33pages
    Appears in Collections:[Graduate Institute & Department of Industrial Economics] Proceeding

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