Optimal contract under brand name collaboration

C-Tier
Journal: Economic Modeling
Year: 2014
Volume: 37
Issue: C
Pages: 238-240

Authors (2)

Basak, Debasmita (not in RePEc) Mukherjee, Arijit (University of Nottingham)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In an international Cournot duopoly, we determine the optimal contract for a brand name collaboration where the contract consists of fixed-fee and output royalty. We show that the firms always have the incentive for brand name collaboration. However, whether the optimal contract will have positive fixed-fee and positive royalty is not immediate and it depends on the factors such as the transportation cost of exporting and the consumers' initial perception about the products of the firms reflected in the consumers' maximum willingness to pay for the products. Thus, our paper shows that the possibility of brand name collaboration is significantly more than predicted in the existing literature.

Technical Details

RePEc Handle
repec:eee:ecmode:v:37:y:2014:i:c:p:238-240
Journal Field
General
Author Count
2
Added to Database
2026-01-26