All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

Ming-Chung Chang
''Market Size Difference between Home Country and Foreign Country and Shrinkage on the Optimal Licensing Mode''
( 2008, Vol. 28 No.9 )
According to the survey of Current Business (Sauers and Argersinger, 2006), the licensing revenue of the United States from abroad has significantly increased from 1975 to 2005 year, showing that international technology licensing is a very important business action. However, the literature seldom discusses the licensing issue under an open economy. This paper's model setting is different with the model settings in a few earlier papers under an open economy. Some conclusions are found herein. If the per unit production cost and the per unit royalty rate are significantly small, then licensing will not occur. However, when the home country market size increases, the no licensing zone also increases given the foreign country market size. More specifically, if the total market size is significant, then the optimal licensing mode may shrink to a two-part fee only.
Manuscript Received : May 14 2008 Manuscript Accepted : May 15 2008

  This abstract has been downloaded 716 times                The Full PDF of this paper has been downloaded 99685 times