Title: Second best contract design for transnational technology transfer based on information rent compensation mechanism
Abstract: This paper analyzed and discussed the characteristics of second best technology transfer contract under incomplete information based on the identification towards realistic problems of multinational technology transfer,through using contract design method of mechanism design theory and comparison study on best technology transfer contract under complete information.The characteristics of second best technology transfer contract demonstrated that host country enterprise(principal) had better pay an extra market revenue share(information rent) to stimulate MNC(agent) transfer the patent technology,and decline the demand and payoff for the know-how technology,and under the second best technology contract mechanism that satisfies the incentive compatibility constrains,the agent's moral hazard behaviors caused by incomplete information would be effectively controlled.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
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