Research On The Bargaining Model Of The Price Of International Technology Transfer

There are four major determinant factors of the price of technology commodity including the cost and fees, expected revenue, bargaining, and other main influencing factors.The particularity of technology commodity has decided the complexity and irregularity of the price of technology. At present there are five categories of price theory and models of technology commodity, but these imperfect models and methods with some flaws did not fully consider the four major determinants of the price of technology and cannot completely explain the formation and the determining process of the price of technology commodity.This thesis firstly generalizes and descripts the theory of the international technology transfer and international technology trade to clarify the basic reasons for international technology transfer and studied its mechanism. On this basis, then from the transactions characteristics of technology commodity, this chapter researchs the connotation of the price of technology commodity and explores the impacting factors. Then this article gives a summary and brief evaluation to the existing theory and models of the price of technology, and points out its insufficiency and main flaws.Because of the impact of some relevant factors, the price of technology transfer is a bargaining result of the two sides depending on the power and skills in the bargaining. A basic feature of technology transfer process is that the two sides are not only in conflict with each other but mutual collaborative about the benefit, and the decision-making of the two sides are influencial each other.This feature is as the same of the bargaining problem. Theoretically, the bargaining model reflects the essence of the forming prosess of technology price. Therefore, it is a inevitable trend to the development of bargaining theory and is a reality requirements to the question of technology transfer to use bargaining theory to develop and improve the price theory of technology commodity.After clarifying the relationship between bargaining theory and negotiation thoery, this thesis separately introduces classical bargaining theory, the Zethen bargaining psychology model, Nash's axiom bargaing model, Rubinstein's bargaining model, finally emphasized to introduce Abhinay Muthoo's bargaining theory. This chapter gives a key research to the bargaining theory of completely information with alternating offers and risk of breakdown and its mechanism built by Rubinstein and Muthoo.This thesis researches the bargaining model with a risk of breakdown of negotiations and its mechanism built by Rubinstein and Muthoo, and then points out the flaw that the hypothesis that one player's subjective probability of his own retreating from the negotiations is his belief in the likelihood of the breakdown of negotiations. After analyzing the cause of the flaw, this thesis concludes that one player's subjective probability of his counterpart's retreating from the negotiations is his belief in the likelihood of the breakdown of negotiations, and then corrects the model according to the conclusion. The revision to the theory supposition not only perfects the bargaining theory theoretically, but also causes it to be application actually. This has an important realistic significance to this model in practical application.A scientific and applicable price model of technology commodity reflects not only the particularity of the price of technology commodity, but also should be strong practical and operational. Based on the analysis of the feasibility of the application of bargaining theory in the international business negotioations, to amend the flaws of the price theory and models of technology commodity, the bargaining process of the price of international technology transfer was analyzed. The necessity and main conception was clarified to construct the model of the price of international technology transfer. On the premise of the supposition of rational economic person, incomplete information, risk-neutral and the subjective belief of the risk the breakdown of negotiations, fully considering the four major determinants of the price of technology, according to the bargaining theory of completely information with alternating offers and risk of breakdown and its revised conclusion, the model of the price of international technology transfer was constructed. This thesis clarified the implication of parameters of the model and gives a method to determine the parameters. This chapter also analyses the limitations and scope of the application of the models.After established the model, this thesis researches the major influencial factors of the price of international technology transfer. The relevant parameters of the model were amended according to these influencial factors. The major influencial factors include: The strategy and target of technology transfer of the supplier, technology buyer's goal and its conditions, technology life cycle, the payment way of technology fees, the way of technology transfer, the way and conditions of technology licence, supply and demand in market as well as competition conditions.On the basis of the characteristics of bargaining of the price of international technology transfer, this thesis clarifies the conception of the application of the model. Then based on the case of the project of price negotiations between Chinese A printing machinery factory and B company in Germany about the printer production line key equipment and the technology transfer, this chapter gives a positive test to the model according to the conclusion of the bargainging model. The positive test proved that it is feasible and applicable to use the model in practice. The establishment of the model has enriched and improved the theory of the models of price of technology transfer and has a vital theoretical and instructional realistc significance to guide the bargaining behavior and the process of international technology transfer.