Paper: arXiv 2407.14642

Authors: David M. Kryskowski, David Kryskowski

Abstract

This paper expands on the concepts presented in Applying the Nash Bargaining Solution for a Reasonable Royalty ( arXiv:2005.10158 ). The goal is to refine the process for determining a reasonable royalty using statistical methods in cases where there is risk and uncertainty regarding each party’s disagreement payoffs (opportunity costs) in the Nash Bargaining Solution (NBS). This paper uses a Bayes Cost approach to analyze Case 1, Case 2, and the Original Nash model from the authors’ previous work. By addressing risk and uncertainty in the NBS, the NBS emerges as a more reliable method for estimating a reasonable royalty, aligning with the criteria outlined in Georgia Pacific factor fifteen.

Complexity vs Empirical Score

  • Math Complexity: 5.5/10
  • Empirical Rigor: 2.0/10
  • Quadrant: Lab Rats — theoretically deep, empirically untested

Why this score: The paper provides a formal mathematical framework applying the Nash Bargaining Solution and Bayes Cost estimation to intellectual property licensing negotiations. However, it lacks empirical backtesting or real-world dataset validation, relying instead on theoretical formulations and hypothetical scenarios.

Research Flowchart

  flowchart TD
    A[Research Goal: Refine NBS Reasonable Royalty under Disagreement Payoff Uncertainty] --> B[Data Inputs: NBS Models, Disagreement Payoffs, Risk Distributions]
    B --> C[Methodology: Apply Bayes Cost Approach to Evaluate Decision Risks]
    C --> D[Computational Process: Analyze Model 1, Model 2, and Original NBS Model]
    D --> E[Outcome: NBS Provides a More Reliable Royalty Framework Aligned with Georgia-Pacific Factor 15]

Cited References (23)

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and 15 more
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0 of 23 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.