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Optimal licensing policy under vertical product differentiation

Nguyen, Xuan, Sgro, Pasquale and Nabin, Munirul 2016, Optimal licensing policy under vertical product differentiation, Review of development economics, In press, pp. 1-14, doi: 10.1111/rode.12270.

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Title Optimal licensing policy under vertical product differentiation
Author(s) Nguyen, Xuan
Sgro, Pasquale
Nabin, Munirul
Journal name Review of development economics
Season In press
Start page 1
End page 14
Total pages 141
Publisher Wiley
Place of publication London, Eng.
Publication date 2016-06-06
ISSN 1467-9361
Summary This paper explores a vertical product differentiation model with a licensing arrangement between a multinational firm with superior technology and a domestic firm with obsolete technology. We find that a subsidy provided by the domestic country's government to the domestic firm to assist with the licensing arrangement is welfare enhancing for the domestic country. Furthermore, both the multinational firm and the domestic country are better off under royalty than under fixed fee licensing. These findings stand in contrast to earlier results in the literature.
Language eng
DOI 10.1111/rode.12270
Field of Research 140209 Industry Economics and Industrial Organisation
140210 International Economics and International Finance
Socio Economic Objective 910203 Industrial Organisations
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Wiley
Persistent URL http://hdl.handle.net/10536/DRO/DU:30084126

Document type: Journal Article
Collection: Department of Economics
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