%0 Journal Article
%T The Optimal Licensing Strategy of an Outside Patentee in Vertically-Related Markets
%A Ming-Chung Chang
%A Jin-Li Hu
%A Chin-Hung Lin
%J International Journal of Economics and Finance
%D 2013
%I 
%R 10.5539/ijef.v5n3p102
%X We extend the model in Kamien and Tauman (1986) by considering vertically-related markets where the outside innovator transfers new technology by means of either a royalty or a fixed fee. Our conclusion is different with Kamien and Tauman (1986) and announces that the optimal licensing strategy for an outside innovator is a royalty contract with a non-exclusion licensing case. When the innovation size is small, the outside innovator¡¯s licensing behavior causes low social welfare.
%U http://www.ccsenet.org/journal/index.php/ijef/article/view/25043