Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062324 | Economics Letters | 2007 | 7 Pages |
Abstract
An upstream firm can license its innovation to downstream firms that have to exert further development effort. There are situations in which more licenses are sold if effort is a hidden action. Moral hazard may thus increase the probability that the product will be developed.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Patrick W. Schmitz,