search query: @indexterm JOINT BUSINESS VENTURES / total: 864
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| Author: | Miyagiwa, K. |
| Title: | Collusion and research joint ventures |
| Journal: | Journal of Industrial Economics
2009 : DEC, VOL. 57:4, p. 768-784 |
| Index terms: | joint business ventures equilibrium analysis licensing R&D co-operation |
| Language: | eng |
| Abstract: | I examine whether cooperation in R&D among firms producing similar products results in product market collusion. Suppose firms engaging in a stochastic R&D race while maintaining the collusive equilibrium in a repeated-game framework. Innovation in the case of non-cooperative R&D leads to an inter-firm asymmetry, destabilizing collusion in pre- and post-discovery periods. Innovation sharing in cooperative R&D preserves the symmetry, also increasing total profit and thereby facilitating collusion. However, welfare may increase with cooperative R&D. The condition for collusion under licensing is also explored with result comparisons. |
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