Bundling and Licensing
Autor(a) principal: | |
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Data de Publicação: | 1999 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/89139 |
Resumo: | A common problem in licensing contracts is that contractual language does not necessarily guarantee that the license will effectively be exclusive. The practical difficulty is that the licensor may be able to invent around this restriction. We show that commodity bundling may provide a mechanism for the innovating firm to credibly commit to act less aggressively after licensing a product innovation. As a result, bundling and licensing may be complementary strategies. Even if the innovating firm does not have the incentive either to bundle or to license, it may still have the incentive to follow a bundling plus licensing strategy. We identify a second remedy for the licensor's commitment problem: a royalty. We show that under certain conditions, a royalty may be used as a commitment device enabling the licensor to credibly - and costlessly - establish exclusivity. |
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Bundling and LicensingA common problem in licensing contracts is that contractual language does not necessarily guarantee that the license will effectively be exclusive. The practical difficulty is that the licensor may be able to invent around this restriction. We show that commodity bundling may provide a mechanism for the innovating firm to credibly commit to act less aggressively after licensing a product innovation. As a result, bundling and licensing may be complementary strategies. Even if the innovating firm does not have the incentive either to bundle or to license, it may still have the incentive to follow a bundling plus licensing strategy. We identify a second remedy for the licensor's commitment problem: a royalty. We show that under certain conditions, a royalty may be used as a commitment device enabling the licensor to credibly - and costlessly - establish exclusivity.Nova SBERUNAlmeida Costa, LuísDierickx, Ingemar2019-12-03T09:34:22Z19991999-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/89139engAlmeida Costa, Luís and Dierickx, Ingemar, Bundling and Licensing (1999). FEUNL Working Paper Series No. 344info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:39:36Zoai:run.unl.pt:10362/89139Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:36:55.943339Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Bundling and Licensing |
title |
Bundling and Licensing |
spellingShingle |
Bundling and Licensing Almeida Costa, Luís |
title_short |
Bundling and Licensing |
title_full |
Bundling and Licensing |
title_fullStr |
Bundling and Licensing |
title_full_unstemmed |
Bundling and Licensing |
title_sort |
Bundling and Licensing |
author |
Almeida Costa, Luís |
author_facet |
Almeida Costa, Luís Dierickx, Ingemar |
author_role |
author |
author2 |
Dierickx, Ingemar |
author2_role |
author |
dc.contributor.none.fl_str_mv |
RUN |
dc.contributor.author.fl_str_mv |
Almeida Costa, Luís Dierickx, Ingemar |
description |
A common problem in licensing contracts is that contractual language does not necessarily guarantee that the license will effectively be exclusive. The practical difficulty is that the licensor may be able to invent around this restriction. We show that commodity bundling may provide a mechanism for the innovating firm to credibly commit to act less aggressively after licensing a product innovation. As a result, bundling and licensing may be complementary strategies. Even if the innovating firm does not have the incentive either to bundle or to license, it may still have the incentive to follow a bundling plus licensing strategy. We identify a second remedy for the licensor's commitment problem: a royalty. We show that under certain conditions, a royalty may be used as a commitment device enabling the licensor to credibly - and costlessly - establish exclusivity. |
publishDate |
1999 |
dc.date.none.fl_str_mv |
1999 1999-01-01T00:00:00Z 2019-12-03T09:34:22Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/89139 |
url |
http://hdl.handle.net/10362/89139 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Almeida Costa, Luís and Dierickx, Ingemar, Bundling and Licensing (1999). FEUNL Working Paper Series No. 344 |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
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Nova SBE |
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Nova SBE |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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