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Author: | Chen, Z. Ross, T. W. |
Title: | Cooperating upstream while competing downstream: a theory of input joint ventures |
Journal: | International Journal of Industrial Organization
2003 : MAR, VOL. 21:3, p. 381-397 |
Index terms: | Econometric models Joint business ventures Competition |
Language: | eng |
Abstract: | Joint ventures in which firms share ownership of a quality that produces an important input have become common. In this model, two parent firms competing in a downstream market set up such a joint venture. Among the results, the authors find that the joint venture can replicate the effects of a sull-scale merger of the parents. |
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