Optimal Two-Part Tariff Licensing under Returns to Scale


  • A. Karakitsiou
  • A. Mavrommati


Patent Licensing, Royalty, Ad-valorem, two tarrif, Cournot Duopoly, Game Theory


In this study we investigate a two-part tariff licensing contract that enables an incumbent innovator to license a cost reducing innovation in a Cournot duopoly characterized by non-constant returns to scale. We identify the optimal two-part tariff licensing contract based on the cost reduction imposed by the use of the new technology and the market parameter.


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How to Cite

Karakitsiou, A., & Mavrommati, A. (2015). Optimal Two-Part Tariff Licensing under Returns to Scale. Asian Journal of Business and Management, 3(1). Retrieved from https://www.ajouronline.com/index.php/AJBM/article/view/2272