We study how much private mineral owners capture geologically-driven advantages in well productivity through a higher royalty rate. Using proprietary data from nearly 1.8 million leases, we estimate that the six major shale plays generated $39 billion in private royalties in 2014. There is limited pass-through of resource abundance into royalty rates. A doubling of the ultimate recovery of the ...

Some recent literature has concluded that patent remedies result in systematically excessive royalties because of holdup and stacking problems. This article shows that this literature is mistaken. The royalty rates predicted by the holdup models are often (plausibly most of the time) below the true optimal rate. Further, those predicted royalty rates are overstated because of incorrect assumpti...

Abstract We look into technology transfer by an insider patentee in a spatial duopoly model under three types of licensing contracts—(i) two‐part tariff with fixed fee and per‐unit royalty, (ii) ad‐valorem royalty (iii) general three‐part fee, royalties. Under contracts, the licenser is better off contract but does than other contracts. In contrast to existing literature, all contracts may make...

This paper generalizes the two-period model of Watt (2000) who demonstrates the possibility of optimal accommodation of a pirate when the royalty rate applying to a creation is uniform and second-period Cournot competition applies. Admitting nonlinear contracts with period-specific royalty rates that leave total payments unchanged, simulation analysis shows that a producer of originals does bet...

We present a web service to find prevailing royalty rates. The service is intended to facilitate technology transfer by suggesting payment scheme when prospective licensee looks through the results list on the webpage of the research information system or technology transfer office. New suggestions are generated according to the special step-by-step algorithm that exploits pre assigned licensor...

Sovereignty and governance in contemporary Africa are hotly contested issues with important—even dire—consequences for all those interested in the continent’s markets, resources, people, and welfare. This article focuses not on questions of how authority is assigned or removed but on how it is shaped, worn, and performed for diverse audiences, particularly in the arena of “traditional governanc...

The present article contains an analysis of differences between licensing and franchising. It is demonstrated that models of royalty rate calculation developed for licensing should not be applied to franchising as benefits received by licensee and franchisee are different. It is proposed to include in the model of royalty calculation the risk reduction generated by franchisor’s effective techno...