A game-theoretical model for inter-organisational collaboration in information systems development

P. Ben Chou

International Journal of Information Technology and Management, 2011, vol. 10, issue 2/3/4, 110-123

Abstract: This paper develops a game-theoretical model to address different levels of cooperation between two firms that share their knowledge/information systems as a local public good. The model shows that the collaboration between two firms can lead to the creation of new knowledge/information technology, and that a higher speed of creating new knowledge can change the structure of the game from a prisoners' dilemma game to a coordination game as an evolutionary process. Therefore, despite the knowledge-sharing dilemma, it is possible for both firms to reach the stable and more efficient full-collaboration equilibrium than the Nash collaboration equilibrium.

Keywords: coordination game; game theory; information systems; inter-organisational collaboration; knowledge sharing dilemma; strategic alliances. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijitma:v:10:y:2011:i:2/3/4:p:110-123

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