Study On the Administer Mechanism of Price Contracts Based on the Adverse Selection of Technology Licensor

Through the application of the classical principal-agent theory,this paper analyse the internal design mechanism of the price contracts of technology licensing under the conditions of adverse selectio based on the technology licensor.This paper show that there is a sequential separated equilibria contracts under the conditions of adverse selection compared with the pure fixed fee contracts of symmetric information.Within the sequential separated equilibria contracts,the good type licensor can differentiate from the bad type licensor through signaling a royalty to the licensee.At the same time,the good type licensor also give some information rent to the licensee through the way of the fixed fee or royalty.