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On Licensing Under Bertrand Competition
Author(s) -
Wang X. H.,
Yang Bill Z.
Publication year - 1999
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00045
Subject(s) - bertrand competition , competition (biology) , economics , microeconomics , cournot competition , oligopoly , biology , ecology
This paper considers licensing by an innovating firm to its competitor in a differentiated duopoly with Bertrand competition. A principal finding is that royalty licensing may be superior to fee licensing for the innovating firm both when the innovation is drastic and when the innovation is non‐drastic.