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. Garella
Ultimo
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 cooperation
Joint venture ; Oligopoly ; Antitrust ; R&D
set-2001
http://www3.interscience.wiley.com/cgi-bin/fulltext/119016585/PDFSTART
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/43980
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