Logo
Munich Personal RePEc Archive

License or entry in oligopoly

Hattori, Masahiko and Tanaka, Yasuhito (2016): License or entry in oligopoly.

[thumbnail of MPRA_paper_73578.pdf]
Preview
PDF
MPRA_paper_73578.pdf

Download (108kB) | Preview

Abstract

We consider an incentive of a choice of options for an outside innovating firm to license its new cost reducing technology to incumbent firms, or to enter into the market with or without license in an oligopoly with three firms. We will show that under linear demand and cost functions the results depend on the size of the market. When the market size is large, license to two incumbent firms without entry strategy is the optimum strategy for the innovating firm. However, when the market size is not large, license to one incumbent firm with or without entry strategy may be optimum.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.