Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
972719 | Mathematical Social Sciences | 2011 | 10 Pages |
Abstract
We study asymptotic bargaining outcomes in licensing a patented technology of an external patent holder to firms in a general Cournot market. Our results are as follows: when the number of firms is large, the bargaining set for each permissible coalition structure suggests that the patent holder should extract the entire profits of all licensees. The outcome that the bargaining finally reaches exactly coincides with the non-cooperative outcome, and it cannot be improved upon even by any objections with almost zero cost. Thus, it is strongly stable. The fair allocation represented by the Aumann–Drèze value is, however, not realized as such a stable bargaining outcome.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Shin Kishimoto, Naoki Watanabe, Shigeo Muto,