Limited Commercial Licensing Strategies: A Piecewise Deterministic Differential Game

Abstract

AbstractWe sketch a dynamic model of limited commercial licensing, also known as “compulsory licensing”, making use of the framework of piecewise-deterministic differential games. The framework features key ingredients, such as (i) The risk that a compulsory licensing will be issued; (ii) The lack of information available to player in terms of when and even whether the compulsory license will be issued. The setup can be used to tackle the important question about the beneficial and detrimental aspects of compulsory licensing.