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Full-Text Articles in Industrial Organization

Technology Licensing In A Differentiated Oligopoly, Aniruddha Bagchi, Arijit Mukherjee Dec 2013

Technology Licensing In A Differentiated Oligopoly, Aniruddha Bagchi, Arijit Mukherjee

Aniruddha Bagchi

We show the effects of product differentiation and product market competition on technology licensing by an outside innovator. For a certain range of product differentiation, both the innovator and the society prefer royalty licensing compared to auction (or fixed-fee), irrespective of Cournot and Bertrand competition, if the number of potential licensees is sufficiently large. Hence, for such a range of product differentiation, neither the innovator nor the antitrust authority requires information about the type of product market competition in preferring the type of the licensing contract.

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Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao Jul 2013

Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao

Yong Chao

The distinct element of a three-part tariff, compared with linear pricing or a two-part tariff, is its quantity target within which the marginal price is zero. This quantity target instrument enriches the firm's strategy set in dictating the competition to a specific level, even in the absence of usual price discrimination motive. With general differentiated linear demand system, the competitive effect of a three-part tariff in contrast to linear pricing depends on the degree of substitutability between products: competition is intensified when two products are more differentiated, yet softened when two products are more substitutable.

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