Work

Royalty licensing in vertically related markets

Year: 2025

Type: article

Abstract: We compare two royalty licensing contracts: per-unit and ad valorem in a vertical market. The licensor always prefers a per-unit over an ad valorem royalty contract. Licensing has a greater positive impact on both consumer and total welfare under an ad valorem royalty.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112372

Author: Elpiniki Bakaouka

Institution: Universitat de les Illes Balears

Language: English

Topic: Merger and Competition Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,030

Funders: Ministerio de Ciencia, Innovación y Universidades, Agencia Estatal de Investigación