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Journal : Indonesian Journal of Interdisciplinary Research in Science and Technology (MARCOPOLO)

Cross Ownership and Licensing Incentive Ayu Sasni Munte
Indonesian Journal of Interdisciplinary Research in Science and Technology Vol. 1 No. 4 (2023): May, 2023
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/marcopolo.v1i4.4317

Abstract

In a homogeneous good Cournot duopoly, a firm owns a cost-reducing technology and shares his ownership to its rival. We show that optimal output of firm 1 is lower under licensing than under no licensing but optimal output of firm 2 is higher under licencing than under no licensing. Superior firm will license its superior technology to firm 2 depends on how effective the technology is.