Licensing under Cournot vs Bertrand competition

Ferreira, Fernanda A.; Ferreira, Flávio; Bode, Oana Ruxandra

doi:10.1080/1331677x.2020.1844586

Cited by 7 publications

(3 citation statements)

References 36 publications

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“…Firms can improve their green innovation levels and market competitiveness by participating in green technology R&D, but the main drawback to it is the costs and uncertainty about R&D outcome. Fortunately, green technology licensing can help innovative firms reduce R&D costs and help noninnovative firms obtain new technologies at a low cost (Ferreira et al., 2021). Hence, this paper proposes green technology cross‐licensing strategies under the cap‐and‐trade policy by building operational models.…”

Section: Literature Reviewmentioning

confidence: 99%

Operational research models for green technology cross‐licensing with known carbon quota trading prices

Zhang

Lin

et al. 2023

Int Trans Operational Res

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Green finance contributes significantly to the openness and transparency of carbon quota trading prices, which is conducive to the development of green technology innovation. With known carbon quota trading prices, we construct game‐based operational research models to analyze fixed‐fee and mixed‐fee cross‐licensing strategies for green technologies between two competing firms under the cap‐and‐trade policy. We compare the equilibrium outcomes of no‐licensing, fixed‐fee, and mixed‐fee cross‐licensing strategies. The findings reveal that product pricing under the fixed‐fee cross‐licensing strategy is beneficial to consumers. The mixed‐fee cross‐licensing strategy is optimal in terms of firms' total profits. When the degree of product substitutions is large and the improvement in carbon emissions is small, firms are more inclined to the no‐licensing strategy. We further introduce the revenue‐sharing contract, which can extend the Pareto improvement domain and improve the performance of green technology cross‐licensing strategies.

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Section: Literature Reviewmentioning

confidence: 99%

Operational research models for green technology cross‐licensing with known carbon quota trading prices

Zhang

Lin

et al. 2023

Int Trans Operational Res

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“…Firms producing differentiated products in a duopoly market simultaneously choose either quantity or price as the strategy variable. Many existing studies focus on the comparison between Cournot and Bertrand's models of competition on the premise of firms formulating the same type of strategy (Naskar and Pal, 2020;Ferreira et al, 2021). found that with homogenous products the quantitysetting firm sets a perfectly competitive level of market output than firms with price setting.…”

Section: Literature Reviewmentioning

confidence: 99%

Mixed competition and technology licensing in a supply chain

Zhang

Zhou

2022

Front. Psychol.

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Technology licensing as a vital part of business behavior in many industries has drawn a fair amount of attention in industrial organization literature. Most existing literature on licensing decisions assumes that all firms engage in Cournot or Bertrand competition, while the type of mixed competition may affect the choice of the licensor. In this context, what decision will the licensor make faced with different mixed competitions? This paper studies the optimal technology licensing contract of a licensor firm engaging in different mixed competitions (Cournot-Bertrand or Bertrand-Cournot) with a potential licensee in a differentiated duopoly market considering one upstream firm (supplier) that provides key inputs. We find that if either the royalty or fixed-fee licensing is applied, the licensor favors royalty licensing under Bertrand-Cournot competition when the degree of substitution is small and prefers the fixed-fee licensing no matter under what kind of mixed competition as the degree of substitution increases. In the case of fixed-fee licensing, the result shows that the profits of licensors are the same under different types of mixed competition. Besides, fixed-fee licensing is not always the optimal choice for consumers, and they would prefer royalty licensing when the degree of substitution is very small.

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“…The focus of this study revolves around investigating the challenges associated with patent licensing within the context of a Cournot duopoly, where one firm holds the role of the patentee and faces capacity constraints [23]. Another study focused on a differentiated Cournot model and a differentiated Bertrand model, in which one of the firms engages in an R&D process resulting in an endogenous cost-reducing innovation [24]. The role of platform economics in facilitating open innovation while addressing the challenges of information stickiness and product diversification risks was studied in [25].…”

Section: Introductionmentioning

confidence: 99%

Game Theory Approach for Open Innovation Systems Analysis in Duopolistic Market

Elmire,

Bassou,

Hlyal

et al. 2023

IJACSA

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The approach used in this study involves applying the Cournot model, which is initially based on the analysis of product quantities in the market. Building upon the obtained equilibrium, a second analysis is conducted to examine the impact of the open innovation integration rate, utilizing a dynamic model. The obtained results have demonstrated that multiple equilibria are possible, and under certain conditions, competing firms have a stake in carefully analyzing the integration rate of open innovation.

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Licensing under Cournot vs Bertrand competition

Cited by 7 publications

References 36 publications

Operational research models for green technology cross‐licensing with known carbon quota trading prices

Operational research models for green technology cross‐licensing with known carbon quota trading prices

Mixed competition and technology licensing in a supply chain

Game Theory Approach for Open Innovation Systems Analysis in Duopolistic Market

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