Monopolist's free patent license sparks new competition, boosts profits in tech industry.
The article explores whether a company with a monopoly would benefit from allowing a new competitor to enter the market by giving them a free patent license. The study shows that in certain situations, this strategy can increase profits for the monopolist, especially when there are network effects at play. By offering a free patent license for a product that works well with their own, the monopolist can actually make more money.