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Alliance-Created Interdependence and the Formation of Alliance Clusters

J. Sawler

Department of Economics at Dalhousie University working papers archive from Dalhousie, Department of Economics

Abstract: Given the rapid acceleration of alliance activity over the past two decaded, the nature of alliance formation must now be considered an essential part of the analysis of market structure. In many markets, firms tend to ally into clusters and the competition in such industries often shifts to mach cluster against cluster rather than firm agaist firm. This paper introduces an explanation for the formation of alliance clusters which suggests that firms' tendency to apply into clusters increases with the extent of interdependence created by their new and preexisting alliances.

Keywords: FIRMS; COMPETITION (search for similar items in EconPapers)
JEL-codes: G34 G30 (search for similar items in EconPapers)
Date: 2000

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Persistent link: http://EconPapers.repec.org/RePEc:dal:wparch:2000-8

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Handle: RePEc:dal:wparch:2000-8