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| Author: | Nault, B. R. Tyagi, R. K. |
| Title: | Implementable Mechanisms to Coordinate Horizontal Alliances |
| Journal: | Management Science
2001 : JUN, VOL. 47:6, p. 787-799 |
| Index terms: | ECONOMICS ALLIANCES EXTERNALITIES INCENTIVES |
| Language: | eng |
| Abstract: | In this paper, the authors examine two simple coordination mechanisms for a horizontal alliance characterized by the following features: (i) firms in the alliance can exert effort only in their "local" markets to increase customer demand for the alliance; (ii) customers are mobile and a customer living in a given alliance member's local area may have a need to buy from some other alliance member; and (iii) the coordination rules followed by the alliance determine which firms from a large pool of potential member-firms join the alliance, and how much effort each firm joining the alliance exerts in its local market. In this horizontal alliance setup, the authors also consider the use of two coordination mechanisms. |
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