This paper investigates optimal licensing in a mixed oligopoly with a foreign firm. It is the first to compare licensing by means of a fixed fee and by means of a royalty when the innovator is a public firm. In contrast to a private oligopoly, we show that license via a fixed fee is superior to...

This paper considers a model of international duopoly with global pollution to investigate the impact of tariff policy and licensing contracts on environmental technology transfer. Our main finding is that free trade is not always preferable. When the protection of intellectual property rights...

We propose an incomplete contract model of licensing of a cost-reducing technology. We incorporate exchange rate uncertainty and analyze its impact on the parties' investment and licensing decisions. We show that exchange rate uncertainty introduces a distortion in the parties' specific...