Licensing in an International Market

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Conference object 01 Jan 2008 Portugal Publisher:AIP PublishingJournal:AIP Conference Proceedings (issn: 0094-243X,

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Authors: Ferreira, Fernanda A.;

doi: 10.1063/1.2990891

handle: 10400.22/4358

Licensing in an International Market

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Abstract

We study the effects of entry of a foreign firm on domestic welfare in the presence of licensing, when the entrant is technologically superior to the incumbent. We show that foreign entry increases domestic welfare for sufficiently large technological differences between the firms under both fixed‐fee licensing and royalty licensing.

Country

Portugal

Related Organizations

Polytechnic Institute of Porto
Portugal

Keywords

Licensing, Entry, Cournot model, Industrial organization

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