The present paper analyzes different forms of organizing a JV for the introduction of a new product. It is shown that under non contractible effort levels by the parent companies, a non cooperative solution, due to free-riding, is less desirable than one where firms cooperate not only at the R&D but also at the selling stage. Also, allowing firms to set up a production JV may be an alternative way to improve upon the fully non cooperative solution. An Antitrust authority should therefore consider the possible destructive effects on the JV results of prohibitions of inter-firm cooperation
Joint venture for a new product and antitrust exemptions / M.R. Battaggion, P.G. Garella. - In: AUSTRALIAN ECONOMIC PAPERS. - ISSN 0004-900X. - 40:3(2001 Sep), pp. 247-262. [10.1111/1467-8454.00125]
Joint venture for a new product and antitrust exemptions
P.G. GarellaUltimo
2001
Abstract
The present paper analyzes different forms of organizing a JV for the introduction of a new product. It is shown that under non contractible effort levels by the parent companies, a non cooperative solution, due to free-riding, is less desirable than one where firms cooperate not only at the R&D but also at the selling stage. Also, allowing firms to set up a production JV may be an alternative way to improve upon the fully non cooperative solution. An Antitrust authority should therefore consider the possible destructive effects on the JV results of prohibitions of inter-firm cooperationPubblicazioni consigliate
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