CournotTechnologyLicensing

CournotTechnologyLicensing - Technology Licensing This is a...

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Technology Licensing Market Parameters Demand for each type of consumer is P = A - B.Q Demand Parameters A = 120 B = 1 Number of Firms N = 3 Warning Messages Pre-Innovation Marginal Cost c1 = 60 Post-Innovation Marginal Cost c2 = 40 Pre-Innovation Cournot Equilibrium Equilibrium Output per Firm = 15 Equilibrium Price = $75.00 Equilibrium Profit per Firm = $225.00 Post-Innovation Cournot Equilibrium Without Technology Licensing With Technology Licensing License Price per Unit = 20 Equilibrium Output per Firm Equilibrium Output per Firm Innovator's Output = 30 Innovator's Output = 30 Non-Innovator's Output = 10 Non-Innovator's Output = 10 Equilibrium Price = $70.00 Equilibrium Price = $70.00 Equilibrium Profit per Firm Equilibrium Profit per Firm Innovating Firm = $900.00 Innovating Firm = $1,300.00 Non-Innovating Firm = $100.00 Non-Innovating Firm = $100.00 This is a spreadsheet that allows us to check on the profitability of technology licensing. We assume that the market contains n Cournot firms with some initial constant marginal costs. One
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CournotTechnologyLicensing - Technology Licensing This is a...

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