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All About Licensing: Part I


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dtm42



Joined: 05 Feb 2008
Posts: 14084
Location: currently stalking my waifu
PostPosted: Sun Jun 17, 2012 3:06 pm Reply with quote
Polycell wrote:
Again, your example ignores time preference and risk aversion. Even assuming no risk, money now is always worth more than money later.


No it's not. Depending on the circumstances, money now can on average be worse. I thought we'd covered this.

As for risk aversion, if the Japanese were risk averse they'd go for the safe option and ensure that there are lots of healthy overseas licensees who can provide them a steady stream of reliable income. This is a much more preferable situation than having a few sick overseas companies to fall back on if the Japanese need money.
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Polycell



Joined: 16 Jan 2012
Posts: 4623
PostPosted: Mon Jun 18, 2012 12:42 am Reply with quote
First off, when I say money now is worth more than money later, I'm stating a basic economic fact - there's a reason even riskless loans earn interest and it isn't inflation. Secondly, it's pretty clear you're so tied to the idea licensors should cultivate foreign distributors you won't accept them not doing so as anything other than irrationality, so continuing this debate is pointless.
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