【摘要】This paper identifies the optimal method to license an innovation that reduces transport cost in a duopoly model of spatial price discrimination. An inside innovator finds licensing by a distance fee more profitable than by a fixed fee; an ad valorem royalty or a per unit royalty. Moreover; the social welfare associated with distance fee licensing is larger than that associated with not licensing. In contrast; an outside innovator never finds licensing by a distance fee the most profitable choice.

【文献来源】Heywood J;Wang Z.Annals of regional Science.2015（2）