Arbeitspapier

Market Power of the Input Supplier, Technology Transfer and Consumer Welfare

It is believed that market power of the input supplier, charging a linear price, is detrimental for the consumers since it creates the double marginalisation problem. We show that this view may not be true if the final goods producers can adopt strategies to reduce rent extraction by the input supplier. Market power of the input supplier may encourage a final goods producer either to license its technology to a competitor or to adopt a less distortionary technology licensing contract. Both these effects may create higher consumer welfare under market power of the input supplier compared to a competitive input market.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 5093

Klassifikation
Wirtschaft
Trade Unions: Objectives, Structure, and Effects
Monopoly; Monopolization Strategies
Oligopoly and Other Imperfect Markets
Contracting Out; Joint Ventures; Technology Licensing
Thema
consumer surplus
labour union
technology licensing

Ereignis
Geistige Schöpfung
(wer)
Cao, Jiyun
Mukherjee, Arijit
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Cao, Jiyun
  • Mukherjee, Arijit
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2014

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