Does technology licensing matter for privatization?

Wang, Leonard F.S.; Mukherjee, Arijit; Zeng, Chenhang

doi:10.1111/jpet.12431

Cited by 16 publications

(8 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…That is, it does not hold under partial privatization. More recently, the studies on mixed oligopoly focus on how the optimal privatization level is affected by technology licensing (Wang et al, 2020), or the number of suppliers (Escrihuela‐Villar et al, 2020). In addition, Klumpp and Su (2019) investigate how competition modes affect the pricing and quality strategies of the firms in a mixed oligopoly.…”

Section: Introductionmentioning

confidence: 99%

On the Neutrality of Profit Taxation in a Mixed Oligopoly

Kuo

Peng

Ueng

2021

J Public Economic Theory

View full text Add to dashboard Cite

This paper investigates the neutrality of profit taxation in a mixed oligopoly where one (partially) public firm competes with private firms. We find that the neutrality of a profit tax is robust under a general cost and a general demand function as long as the degree of privatization is endogenously determined. This result is also true when product heterogeneity is considered under both Cournot and Bertrand competition. By contrast, if the degree of privatization is exogenously given, the profit tax neutrality holds only in the cases where the public firm is fully privatized or fully state‐owned; otherwise, the neutrality breaks down.

show abstract

Section: Introductionmentioning

confidence: 99%

On the Neutrality of Profit Taxation in a Mixed Oligopoly

Kuo

Peng

Ueng

2021

J Public Economic Theory

View full text Add to dashboard Cite

show abstract

“…Heywood, Lu, and Ye (2019) considered the optimal two‐part fee of a public firm innovator licensing to a more efficient foreign rival. Wang, Mukherjee, and Zeng (2020) examined the relationship between privatization and licensing (by public or private firms) with the consideration of either a domestic or a foreign private firm. However, none of these papers addresses the technology licensing strategy in a mixed market.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal licensing strategy of green technology in a mixed oligopoly: Fixed fee versus royalty

2020

Manage Decis Econ

View full text Add to dashboard Cite

This paper develops a mixed oligopoly model to explore the optimal licensing strategy of green technology. In our model, either private firm or public firm could be the patentee. We show that when the private firm is the patentee, all the two types of licensing contracts (i.e., fixed fee and royalty) are optimal. However, when the public firm is the patentee, the fixed fee licensing is the optimal licensing contract. We examine the welfare consequence of a privatization policy under the optimal licensing contract and show that the privatization policy hinder the improvement of social welfare.

show abstract

“…The licensing of technology alters the market structure and exerts an impact on government policies (Mukherjee and Tsai, 2013). For instance, trade policy (Ghosh and Saha, 2008;Vashchilko, 2013;Ghosh and Saha, 2015) as well as privatization policy (Wang et al, 2020;Li, 2021). According to Ghosh and Saha (2015), the optimal policy in a scenario where technology licensing is feasible may differ significantly from that in standard strategic trade policy settings that overlook the possibility of technology licensing.…”

Section: Introductionmentioning

confidence: 99%

Is Free Trade in Exchange for Technology Licensing Feasible?

Wang¹

2023

Preprint

View full text Add to dashboard Cite

In the model of vertical product differentiation, the quality of domestic products is inferior to that of foreign one. Our findings suggest that technology licensing from foreign firm to domestic one can enhance consumer surplus and social welfare. However, due to lower profits resulting from such licensing despite reduced tariff, foreign firm may be reluctant to engage in it. Further, we find that the domestic government can enhance social welfare by exchanging foreign firm's technology licensing for free with domestic firm through free trade under certain conditions, regardless of whether a fixed-fee or per-unit royalty licensing contract is used. This provides developing country firms with ideas on how to acquire technology from developed country firms.

show abstract

Does technology licensing matter for privatization?

Cited by 16 publications

References 35 publications

On the Neutrality of Profit Taxation in a Mixed Oligopoly

On the Neutrality of Profit Taxation in a Mixed Oligopoly

Optimal licensing strategy of green technology in a mixed oligopoly: Fixed fee versus royalty

Is Free Trade in Exchange for Technology Licensing Feasible?

Contact Info

Product

Resources

About