Network Effects and Technology Licensing with Fixed Fee, Royalty, and Hybrid Contracts

Lin, Lihui; Kulatilaka, Nalin

doi:10.2753/mis0742-1222230205

Cited by 70 publications

(43 citation statements)

References 4 publications

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“…Since then, there have been numerous studies on technology licensing (e.g., Rockett, 1990;Mukherjee and Pennings, 2006;Lin and Kulatilaka, 2006;Arora et al, 2013;Crama et al, 2013;Avagyan et al, 2014;Bagchi and Mukherjee, 2014;Erkal and Minehart, 2014;and Zhao et al, 2014). For example, Rockett (1990) studies the optimal technology licensing strategy in a duopoly market, and he finds that in the industries with lower imitation costs and with products that are easier to imitate, a fixed fee licensing dominates royalty licensing.…”

Section: Accepted Manuscriptmentioning

confidence: 98%

Quantity and collection decisions in a closed-loop supply chain with technology licensing

Hong

Govindan

et al. 2017

European Journal of Operational Research

227

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Section: Accepted Manuscriptmentioning

confidence: 98%

Quantity and collection decisions in a closed-loop supply chain with technology licensing

Hong

Govindan

et al. 2017

European Journal of Operational Research

227

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“…Lin and Kulatilaka (2006) assume that such effects are likely to be stronger in online gaming than in most other networked industries. For an MMO game, a larger number of co-players would make the game more fun, more interactive and more challenging.…”

Section: Development Of Hypothesesmentioning

confidence: 98%

“…Many researchers (e.g., Bonardi and Durand 2003;Lin and Kulatilaka 2006;Venkatraman and Lee 2004) name video gaming as a typical industry where network effects occur. However, the studies often focus on investigating indirect network effects that occur from complementary products (e.g., a game console plus a range of games that run on it; Clements and Ohashi 2005;Shankar and Bayus 2003).…”

Section: Introductionmentioning

confidence: 99%

Assessing the economic effects of server launches in free-to-play MMO games

Voigt

Hinz

2016

J Bus Econ

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In MMO (massively multi-player online) games, the interaction among thousands of players can produce both positive and negative network effects. It is therefore crucial for a company managing MMO games to establish how the entire user base should be distributed across different game instances ('servers') in order to optimize the players' game experience and, ultimately, the company's revenues. While splitting the user base onto different game servers is a common measure in the industry, there is a conspicuous lack of clear guidelines as to when launching new game servers would be advisable. Our work notably fills this gap: for a popular MMO real-time strategy game, our counterfactual simulation shows that a division of the user base across different game servers can lead to additional revenues if implemented at the right time. For the game in focus, our results indicate that launching multiple new game servers would be beneficial in terms of revenue when the game was new, and additional servers every 90-120 days when it was in decline.

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“…However, exceptions can be found in literature, as the percentage of products that are standard or customized [42], the number of complementary technologies/standards employed [43] and the modularity of the product [44]. Generally, allied arguments have faced flexibility as outcomes of management know how [45].…”

Section: Literature Reviewmentioning

confidence: 99%