Patent pricing under incomplete information

Patent pricing is fundamental for patent industrialisation. This article aims to capture the patent price under incomplete information with game theory approaches. The results show first, patent industrialisation with a high technology level promotes outputs and reduces the prices of final goods. Second, competition decreases the price of patents, while asymmetric information deters patent industrialisation. Finally, a new type of risk function is established to merit the risk of cheap information, and we show that exaggerated technology amplifies the risks of both cost and profit. The policy implication is to strengthen information disclosure and supervision about patents. Finally, numerical examples are illustrated with the sensitivity analysis of the key parameters to justify the proposed model.