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...

White (1996), Poyago-Theotoky (2001) and Myles (2002) prove that the optimal subsidy, equilibrium output level, all firms' profits and social welfare are identical before and after privatization of a public firm in a mixed oligopolistic market. We show that we can obtain these irrelevance...

This paper analyzes a mixed duopoly in which a public firm and a (possibly partially) foreign-owned firm choose their capacity scales before competing in quantities. We show that the private firm chooses over-capacity, as in previous literature, except if it is completely foreign-owned. In this...

White (1996), Poyago-Theotoky (2001) and Myles (2002) prove that the optimal subsidy, equilibrium output level, all firms' profits and social welfare are identical before and after privatization of a public firm in a mixed oligopolistic market. We show that we can obtain these irrelevance...