Does two-part tariff licensing agreement enhance both welfare and profit?
(2014)
Journal Article
Mukherjee, A., & Tsai, Y. (2015). Does two-part tariff licensing agreement enhance both welfare and profit?. Journal of Economics, 116(1), 63-76. doi:10.1007/s00712-014-0421-5
It is general belief that firm profit is higher under two-part tariff licensing, while social welfare is greater under fixed-fee licensing. We show that this conclusion need not hold when technology transfer is costly and, in particular, when the qua... Read More about Does two-part tariff licensing agreement enhance both welfare and profit?.