Chasing patents

Authors

Menezes, Flavio
Pitchford, Rohan

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Crawford School of Economics and Government, The Australian National University

Abstract

We examine the problem faced by a company that wishes to purchase patents in the hands of two different patent owners. Complementarity of these patents in the production process of the company is a prime effciency reason for them being owned (or licenced) by the company. We show that this very same complementarity can lead to patent owners behaving strategically in bargaining, and delaying their sale to the company. When the company is highly leveraged, such ineffcient delay is limited. Comparative statics results are also obtained.

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Citation

Menezes, F. & Pitchford, R. (2002). Chasing patents. International and Development Economics Paper 02-3 Canberra, ACT: Crawford School of Economics and Government, The Australian National University.

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Open Access

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