Analysis on the Impact of Network Effects on the Optimal Licensing Decision

In the Cournot oligopoly competition conditions,this paper takes the network effects intensity as the parameter, establishes three optimal decision-making models of technology licensing, and obtains the optimal decisions. It analyses the impact of the network effects parameter on the optimal decision variables,and concludes that as long as technological innovation is drastic, the patent licensor’s profits will increase as the network effect intensity increases. Whether in licensing by means of fixed fee, licensing by means of royalty or hybrid licenses,as long as technological innovation is drastic, fixed fees will increase as the network effect intensity increases. And its impact on the royalty in licensing by means of royalty and the hybrid licenses is different.