The DOI matches its Crossref record.
Fees Versus Royalties and the Private Value of a Patent
Abstract
We compare how much profit an owner of a patented cost-reducing invention can realize by licensing it to an oligopolistic industry producing a homogeneous product, by means of a fixed fee or a per unit royalty. Our analysis is conducted in terms of a noncooperative game involving n + 1 players: the inventor and the n firms. In this game the inventor acts as a Stackelberg leader, and it has a unique subgame perfect equilibrium in pure strategies. It is shown that licensing by means of a fixed fee is superior to licensing by means of a royalty for both the inventor and consumers. Only a “drastic” innovation is licensed to a single producer.
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Citations
Cited by
A monopolistic market for information
Admati, A. R., & Pfleiderer, P. (1986) · Journal of Economic Theory · doi:10.1016/0022-0531(86)90052-9 · Cited by 317
External Verifiability of Accounting Information and Intangible Asset Transactions
Kim-Gina, J. (2018) · doi:10.2139/ssrn.3186175 · Cited by 7
Metadata
- Authors
- Kamien, M. I., & Tauman, Y.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1986-08
- Volume
- 101
- Issue
- 3
- Pages
- 471
- ISSN
- 0033-5533 (ISSN-L)
- OpenAlex
- W2066949090
- Cited by
- 632
- References
- 0
- FWCI
- 13.22
- Type
- journal article
- Language
- en
- Open access
- closed
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Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
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How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
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- CoChat. (2026). Citation check: Fees Versus Royalties and the Private Value of a Patent. https://app.cochat.ai/papers/10.2307/1885693
- The paper
- Kamien, M. I., & Tauman, Y. (1986). Fees Versus Royalties and the Private Value of a Patent. The Quarterly Journal of Economics. https://doi.org/10.2307/1885693
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
