Under the assumption of decreasing returns to scale, we compare several licensing mechanisms - per-unit royalty, an ad valorem royalty, and a revenue-royalty, and combinations with fixed fees - for an insider patentee. In the case of a non-drastic innovation, the patentee maximizes its profits by offering, respectively, an ad valorem royalty, a revenue-royalty and a two-part per-unit royalty, if the cost function is scarcely or highly convex, moderately-low convex, and moderately-high convex. In the case of a drastic innovation, the patentee always offers an ad valorem royalty contract.

Colombo, S., Filippini, L., Revenue royalties, <<JOURNAL OF ECONOMICS>>, 2016; 118 (1): 47-76. [doi:10.1007/s00712-015-0459-z] [http://hdl.handle.net/10807/71928]

Revenue royalties

Colombo, Stefano;Filippini, Luigi
2016

Abstract

Under the assumption of decreasing returns to scale, we compare several licensing mechanisms - per-unit royalty, an ad valorem royalty, and a revenue-royalty, and combinations with fixed fees - for an insider patentee. In the case of a non-drastic innovation, the patentee maximizes its profits by offering, respectively, an ad valorem royalty, a revenue-royalty and a two-part per-unit royalty, if the cost function is scarcely or highly convex, moderately-low convex, and moderately-high convex. In the case of a drastic innovation, the patentee always offers an ad valorem royalty contract.
2016
Inglese
Colombo, S., Filippini, L., Revenue royalties, <<JOURNAL OF ECONOMICS>>, 2016; 118 (1): 47-76. [doi:10.1007/s00712-015-0459-z] [http://hdl.handle.net/10807/71928]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/71928
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