Greater Cost Dispersion Improves Oligopoly Profit: Asymmetric Contributions to Joint Ventures

Long Ngo and Antoine Soubeyran
Authors registered in the RePEc Author Service: Ngo Van Long and Long Ngo ()

Chapter 7 in Competition, Cooperation, Research and Development, 1997, pp 126-137 from Palgrave Macmillan

Abstract: Abstract The literature on joint ventures has detailed a variety of motives for firms to engage in partnering (see Berg and Friedman, 1980; Connolly, 1984; Harrigan, 1985; Hennart, 1991; Hladik, 1985; Kogut, 1988; Weston and Ornstein, 1984; D’Aspremont and Jacquemin, 1988; Kamien, Muller and Zang, 1992; among others). The motives that are most commonly cited are risk sharing, access to markets and technology, exploitation of economies of scale and scope, and the possibility to control the degree of rivalry. One important motive for joint venture formation seems to have been neglected: the transfer of resources from the participating firms to the joint venture may serve as a coordinating device among these otherwise rival firms, where the coordination takes the form of increasing the asymmetry between firms by asking originally symmetric firms to contribute to the joint venture in a non-uniform way. The present chapter is an attempt to address this issue.

Keywords: Marginal Cost; Joint Venturis; International Joint Venture; Nash Bargaining Solution; Unit Production Cost (search for similar items in EconPapers)
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25814-7_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349258147

DOI: 10.1007/978-1-349-25814-7_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().