Ex-ante Agreements and FRAND Commitments in a Repeated Game of Standard-Setting Organizations View Full Text


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Article Info

DATE

2019-02

AUTHORS

Gastón Llanes

ABSTRACT

I study licensing and technology choice in standard setting. I find that there may be inefficient adoption of technologies, even when firms commit to a maximum royalty or price cap for the use of their patents. When firms interact repeatedly to develop standards, a commitment to set fair, reasonable and non-discriminatory (FRAND) royalty fees may lead to more efficient technologies and higher surplus for all parties. This result can explain why standard-setting organizations favor FRAND commitments over more structured licensing commitments—such as price caps—and why there are been relatively few cases of hold-up in practice, even though such opportunistic behavior has been a primary cause of concern for innovation economists. More... »

PAGES

1-16

Identifiers

URI

http://scigraph.springernature.com/pub.10.1007/s11151-018-9647-7

DOI

http://dx.doi.org/10.1007/s11151-018-9647-7

DIMENSIONS

https://app.dimensions.ai/details/publication/pub.1105712578


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