Munich Personal RePEc Archive

Strategic Trading Partner Selection for an Upstream Licenser

Yamada, Mai (2016): Strategic Trading Partner Selection for an Upstream Licenser.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_84159.pdf

Download (72kB) | Preview

Abstract

This paper examines the determinant of trading partner selection for a licenser. The licenser negotiates with either a downstream incumbent which has its own production facility (the outside option) or a downstream entrant, and determines a two-part tariff for licensing. If the licenser trades with the entrant (the incumbent), the downstream market becomes a duopoly (monopoly). We find that the licenser’s bargaining power over the incumbent does not influence the licenser’s decision on its trading partner although that over the entrant, its marginal costs of licensing to the entrant and the incumbent, and the incumbent’s outside value matter for its decision.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.