This paper analyzes the joint design of innovation and competition policy. It focuses on collusion sustainability changes due to implementation of antitrust fines and R&D subsidies in an extension of a model by Miyagiwa (2009). Generic subsidies for R&D are found not to facilitate collusion, while additional subsidization to research joint ventures (RJVs) can be collusion facilitating. We also ...

This paper identiies an overlooked implication of models of research joint ventures initiated by d'Aspremont and Jacquemin (1988). Even though the aggregate R&D cost of identical rms in a research joint venture would be lowest if they invested equally to reduce subsequent production costs, nonetheless members may often enlarge their overall joint proot by making unequal investments. Such a stra...

This paper presents one-to-one matching and assignment problems with externalities across pairs such as figure skating competition joint ventures in oligopolistic markets. In these models, players care not only about their partners but also which how many rival are formed. Thus, it is important for a deviating pair to know will realize after deviates from (an effectiveness function) order defin...

The aim of this paper is to investigate the impact of the firms’ behavior in the product market on their decisions at the R&D stage. We compare the consequences of the Stackelberg-type competition of two firms for the R&D investments with the situation of a cartelized industry under the assumption of quadratic cost functions. Numerical analysis shows that the lowest values of R&D efforts occur ...

This paper links the declining propensity of multinational firms to share ownership of their foreign operations to increasing returns to coordination associated with managing globalized operations. The paper isolates the characteristics associated with the decision to share ownership in international operations and then employs two exogenous shifts in the relative cost of sharing ownership to i...

Existing research in the social network and alliance literatures shows that the embedding of alliance activity in the network structure that results from prior partnerships influences patterns of new tie formation, but has not examined whether such network embeddedness affects the failure rate of the ties that are formed. We focus empirically on the unplanned dissolution of joint ventures betwe...

This article examines how multiple ownership changes unfold in international equity joint venture (IEJV) evolution and how such repeated changes impact short-term performance and long-term survival. By theorizing a new concept—the trap of continual change—in the IEJV context, we challenge the adaptive viewpoint assumed in alliance dynamics research. We propose that partners sometimes respond to...