Munich Personal RePEc Archive

Licensing with capacity constraint

Colombo, Stefano and Filippini, Luigi and Sen, Debapriya (2020): Licensing with capacity constraint.

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Abstract

We consider a patent licensing game with a capacity constrained innovator. We show that when the constraint is strong (weak), the patentee prefers licensing by means of a fixed fee (unit royalty). In the case of a two-part tariff, the innovator charges a positive fixed fee if and only if the constraint is strong enough.

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