Welfare effects of entry into international markets with licensing

Ferreira, Fernanda A.; Ferreira, Flávio

http://hdl.handle.net/10400.22/6661

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Authors

Ferreira, Fernanda A.

Ferreira, Flávio

Abstract(s)

We study the effects of entry of a foreign firm on domestic welfare in the presence of licensing, when the entrant is technologically inferior to the incumbent. We show that foreign entry increases domestic welfare for intermediate (respectively, sufficiently large) technological differences between the firms under licensing with fixed fee (respectively, output royalty).

Keywords

Game theory Cournot model Entry Licensing

URI

http://hdl.handle.net/10400.22/6661

Citation

Ferreira, F. A., & Ferreira, F. (2008). Welfare Effects of Entry into International Markets with Licensing. In M. D. Todorov (Ed.), Applications of Mathematics in Engineering and Economics ’34 (Vol. 1067, pp. 321–327).