Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5083346 | International Review of Economics & Finance | 2016 | 7 Pages |
Abstract
This paper develops a two-country Cournot duopoly model to investigate the implications of international technology licensing. It is shown that if the tariff imposed by the domestic country is high, it is optimal for the foreign firm to adopt an inferior technology for its production when it licenses its most advanced technology to the domestic firm. Such a licensing arrangement may improve welfare of the two countries.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hsiu-Li Chen, Hong Hwang, Arijit Mukherjee, Pei-Cyuan Shih,