Resource title

Licensing by a monopolist and unionized labor market

Resource image

image for OpenScout resource :: Licensing by a monopolist and unionized labor market

Resource description

We show that a monopolist final goods producer may find it profitable to create competition by licensing its technology if the input market is imperfectly competitive. With a centralized union, we show that licensing by a monopolist is profitable under both uniform and discriminatory wage settings by the union. However, the incentive for licensing is higher under the former situation. We also show that licensing by the monopolist is profitable under both quantity and price competition, and the incentive for licensing is higher under price competition than under quantity competition. Our qualitative results hold even with decentralized unions.

Resource author

Soma Mukherjee, Udo Broll, Arijit Mukherjee

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22750

Resource license

Adapt according to the presented license agreement and reference the original author.