a r t i c l e i n f o JEL classification: D21 D43 D44 D45 Keywords: Patent licensing Insider Asymmetric information Per unit royalty Ad valorem royalty We study an inside patent holder's optimal licensing policy when it has imperfect information about the value of the patent to its rival. The patent holder can choose any two-part licensing fee with either per unit or ad valorem royalties. We de...

We analyse the problem of a non-producing patentee who licenses an essential process innovation to a vertical Cournot oligopoly. The vertical oligopoly is composed of an upstream and a downstream sector which may differ in their efficiency or, in other words, in the benefit they derive from the innovation. In this framework we characterise the optimal licensing contract in terms of the licensin...

Wind-power development in the U.S. occurs primarily on private land, producing royalties for landowners through private contracts with wind-farm operators. Texas, the U.S. leader in wind-power production with well-documented support for wind power, has virtually all of its ~12 GW of wind capacity sited on private lands. Determining the spatial distribution of royalty payments from wind energy i...

National advertising is an important ongoing marketing activity in a franchise arrangement. A majority of franchisors require franchisees to pay an advertising royalty as a percentage of gross revenues while some require franchisees to pay a fixed advertising fee. These payments are earmarked for national advertising. We investigate the relationship between the franchisor’s profits and the diff...

Technology innovations continue to be one of the greatest drivers of economic growth. Realizing the value of such innovations, however, requires substantial follow-on investments in development and commercialization. The value of these investments depends on not only the demand, but also actions by potential competitors, which are uncertain at the time of the investment. This uncertainty create...

On 2 July 2015, the killing of a lion nicknamed "Cecil" prompted the largest global reaction in the history of wildlife conservation. In response to this, it is propitious to consider the ways in which this moment can be developed into a financial movement to transform the conservation of species such as the lion that hold cultural significance and sentiment but whose numbers in the wild are dw...

I conducted research to enable the US Minerals Management Service (MMS) to maximize natural gas royalties. MMS is the agency of the US Department of the Interior responsible for managing mineral royalties. As part of managing royalties, MMS decides whether to accept royalties in value (cash payment, RIV) or in kind (physical transfer of gas, RIK). When MMS collects RIK, it also decides how to t...