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Record W3124123089

General licensing schemes for a cost-reducing innovation

2002· preprint· en· W3124123089 on OpenAlexaff
Debapriya Sen, Yair Tauman

Bibliographic record

VenueRePEc: Research Papers in Economics · 2002
Typepreprint
Languageen
FieldBusiness, Management and Accounting
TopicIntellectual Property and Patents
Canadian institutionsToronto Metropolitan University
Fundersnot available
KeywordsInnovatorDuopolyCournot competitionIncentiveMonopolyMicroeconomicsOligopolyIndustrial organizationStochastic gameEconomicsBusinessEntrepreneurship
DOInot available

Abstract

fetched live from OpenAlex

Two general forms of standard licensing policies are considered for a non-drastic cost-reducing innovation: (a) combination of an upfront fee and uniform linear royalty, and (b) combination of auction and uniform linear royalty. It is shown that in an oligopoly, the total reduction in the cost due to the innovation for the pre-innovation competitive output forms the lower bound of the payoffs of both outsider and incumbent innovators. Further, the private value of the patent is increasing in the magnitude of the innovation, while the Cournot price and the payoff of any other firm fall below their respective pre-innovation levels. Sufficiently significant innovations from an outsider innovator are licensed exclusively to a single firm. Otherwise, all other firms, except perhaps one, become licensees. The dissemination of the innovation is generally higher with an incumbent innovator compared to an outsider. For both outsider and incumbent innovators, the monopoly does not provide the highest incentive to innovate; for sufficiently insignificant innovations, it is the duopoly that does so, and, the industry size that provides the highest incentive increases with the magnitude of the innovation. Finally, it is argued that significant innovations are more likely to occur when the innovator is an incumbent firm.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Other design · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.971
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0020.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.000
Science and technology studies0.0000.000
Scholarly communication0.0010.000
Open science0.0000.001
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.216
GPT teacher head0.319
Teacher spread0.103 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designOther design
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations4
Published2002
Admission routes1
Has abstractyes

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