Study on the Nonexclusive Price Contracts of Technology Licensing Under the Conditions of Adverse Selection

Through the application of the classical principalagent theory,this paper unveils the internal mechanism of the nonexclusive price contracts of technology licensing under the conditions of adverse selection.It shows that the licensor can license a nonexclusive technology through royalty contracts for the badtype licensee and the pure fixed fee contracts for the goodtype licensee.But in order for an incentive to be effective,the licensor must pay some information rent for the good licensee.