Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Wednesday, December 11, 2013

Cross-Licensing and Competition

Doh-Shin Jeon (Toulouse School of Economics) and Yassine Lefouili (Toulouse School of Economics) describe Cross-Licensing and Competition.

ABSTRACT:  We study bilateral cross-licensing agreements among N(> 2) firms that engage in competition after the licensing phase. It is shown that the most collusive cross-licensing royalty, i.e. the one that allows the industry to achieve the monopoly profit, is sustainable as the outcome of bilaterally efficient agreements. When the terms of the agreements are not observable to third parties, the monopoly royalty is the unique symmetric bilaterally efficient royalty. However, when the terms of the agreements are public, the most competitive royalty (i.e. zero) can also be bilaterally efficient. Policy implications regarding the antitrust treatment of cross-licensing agreements are derived from these results.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/12/cross-licensing-and-competition.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef019b001cfc2a970b

Listed below are links to weblogs that reference Cross-Licensing and Competition:

Comments

Post a comment