Exclusive Versus Non-Exclusive Licensing Strategies and Moral Hazard

  title={Exclusive Versus Non-Exclusive Licensing Strategies and Moral Hazard},
  author={Patrick W. Schmitz},
  journal={IO: Productivity},
An upstream firm can license its innovation to downstream firms that have to exert further development effort. There are situations in which more licenses are sold if effort is a hidden action. Moral hazard may thus increase the probability that the product will be developed. 
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On Monopolistic Licensing Strategies under Asymmetric Information
  • P. Schmitz
  • Economics, Materials Science
  • J. Econ. Theory
  • 2002
A research lab that owns a patent on a new technology but cannot develop a marketable final product based on the new technology will sometimes sell two licences, even though under complete information it would have sold one exclusive licence. Expand
How to License Intangible Property
We examine the optimal licensing strategy of a research lab selling to firms who are product market competitors. We consider an independent lab as well as a research joint venture. We show that (1)Expand
Patents and R&D: The tournament effect
We identify a new route through which patent protection may affect R&D incentives, the tournament effect. It may decrease R\&D incentives, in which case patent protection may either adversely affectExpand
Patents and the Diffusion of Technical Information
Does the disclosure requirement of the patent system encourage the diffusion of inventions? This paper builds a simple model where firms choose between patents and trade secrecy to protectExpand
Patents and R&D with imitation and licensing
Abstract We show the effect of patent protection on R&D investment in the presence of ‘inventing around’ (or ‘non-infringing’ imitation) and technology licensing. Though the ‘tournament effect’ underExpand
Patent licensing with spillovers
The purpose of this paper is to study the effect of spillover on extent of licensing when cost reducing innovation is introduced and licensed to a number of oligopolistic firms. We characterize theExpand
Fees Versus Royalties and the Private Value of a Patent
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Abstract This article examines a principal-agent model of financial contracting in which a risk-neutral entrepreneur (agent) makes an unobservable ex-ante effort choice while employing the investmentExpand
Heterogeneity, Tournaments, and Hierarchies
Tournament contracts are characterized that simultaneously elicit first-best efficient effort levels and self-selection of risk-neutral heterogeneous workers into ability-specific contracts.Expand
Licensing and the sharing of knowledge in research joint ventures
Abstract We consider a three-stage model of research and development (R & D) to capture some key elements of research joint ventures (RJVs). In the last of the three stages, firms compete in theExpand