Patent pools are commonly used to license technologies to manufacturers. Whereas previous studies focused on manufacturers active in independent markets, we analyze pools licensing to competing manufacturers, allowing for multiple licensors and nonlinear tariffs. We find that the impact of pools on welfare depends on the industry structure: whereas they are procompetitive when no manufacturer is integrated with a licensor, the presence of vertically integrated manufacturers triggers a novel trade-off between horizontal and vertical price coordination. Specifically, pools are anticompetitive if the share of integrated firms is large, procompetitive otherwise. We then formulate information-free policies to screen anticompetitive pools.

Patent pools, vertical integration, and downstream competition / Markus, Reisinger; Tarantino, Emanuele. - In: RAND JOURNAL OF ECONOMICS. - ISSN 0741-6261. - 50:1(2019), pp. 168-200. [10.1111/1756-2171.12266]

Patent pools, vertical integration, and downstream competition

Tarantino E
2019

Abstract

Patent pools are commonly used to license technologies to manufacturers. Whereas previous studies focused on manufacturers active in independent markets, we analyze pools licensing to competing manufacturers, allowing for multiple licensors and nonlinear tariffs. We find that the impact of pools on welfare depends on the industry structure: whereas they are procompetitive when no manufacturer is integrated with a licensor, the presence of vertically integrated manufacturers triggers a novel trade-off between horizontal and vertical price coordination. Specifically, pools are anticompetitive if the share of integrated firms is large, procompetitive otherwise. We then formulate information-free policies to screen anticompetitive pools.
2019
Patent pools, vertical integration, and downstream competition / Markus, Reisinger; Tarantino, Emanuele. - In: RAND JOURNAL OF ECONOMICS. - ISSN 0741-6261. - 50:1(2019), pp. 168-200. [10.1111/1756-2171.12266]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/189698
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