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Competition in Licensing |
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Yair Tauman and Ming-hungWeng |
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Working Paper |
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Ming-hungWeng |
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We analyze the licensing strategies
of innovators who compete to license their substitution inventions. If
inventors face deterministic competition, they collectively will induce a
perfect diffusion of the new technology even when
the innovation is drastic. If a subsequent substitution invention is
probable, the early inventor of a drastic innovation will also license the
whole industry when the probability facing a potential competition is very high. |
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