On the superiority of fixed fee over auction in asymmetric markets

B-Tier
Journal: Games and Economic Behavior
Year: 2009
Volume: 67
Issue: 1
Pages: 331-333

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

It is well known that selling licenses for the use of a cost-reducing innovation by auction yields a higher revenue compared to fixed fee in a symmetric Cournot industry. In this note we show that this result can be reversed in an asymmetric Cournot industry, i.e., the fixed fee policy can generate a strictly higher revenue than the auction policy in an industry where prior to the innovation firms are cost-asymmetric.

Technical Details

RePEc Handle
repec:eee:gamebe:v:67:y:2009:i:1:p:331-333
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29