Bouguezzi, Fehmi (2010): Transfert de technologie dans une ville carrée à deux dimensions avec cout de transport quadratique. Unpublished.
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This paper studies and compares licensing regimes of a cost reducing innovation in a two dimensional square city where consumers are located in the interior of the square city and pay a quadratic transport cost when moving to one of the competing firms. The difference between results in this model and results in the other models of the existing literature is that here I find that royalties licensing is always better than fixed fee licensing independently of the size of the innovation. This result contradicts those found in a linear city à la Hotelling and in a circular city à la Salop. However, the paper shows that optimal licensing strategies for the patent holding firm are the same as in a Hotelling model where royalties are better for a non drastic innovation.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Keywords: | Technology transfer, Patent licensing, Square city |
| Subjects: | O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L24 - Contracting Out; Joint Ventures; Technology Licensing |
| ID Code: | 23158 |
| Deposited By: | Fehmi Bouguezzi |
| Deposited On: | 09. Jun 2010 05:14 |
| Last Modified: | 30. Aug 2010 17:31 |
| References: | Arrow, K., (1962). Economic welfare and the allocation of resources for inventions. In: Nelson, R. (Ed.), The Rate and Direction of Inventive Activity. Princeton University Press, Princeton. Bouguezzi, F., 2010. Technology transfer in a linear city with symmetric locations, MPRA Paper 21055, University Library of Munich, Germany Bouguezzi, F., 2010. Technology transfer in a circular model. MPRA Paper No. 22417, University Library of Munich, Germany. Maldonado, M., Valverde, S., Escalona, M., 2005. Cournot Competition in a Two-Dimensional Circular City, Manchester School, Vol. 73, No. 1, pp. 40-49 Poddar, S. and Sinha, U.B., 2004. On patent licensing in spatial competition. Economic Record 80, 208-218. Wang, X.H., 1998. Fee versus royalty licensing in a Cournot duopoly model. Economics Letters 60, 55-62. Wang, X.H., 2002. Fee versus royalty licensing in a differentiated Cournot duopoly. Journal of Economics and Business 54, 253-266 |
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