On bilateral agreements: just a matter of matching

Xavier Martinez-Giralt and Rosella Nicolini

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: This paper aims at assessing the importance of the initial technological endowments when firms decide to establish a technological agreement. We propose a Bertrand duopoly model where firms evaluate the advantages they can get from the agreement according to its length. Allowing them to exploit a learning process, we depict a strict connection between the starting point and the final result. Moreover, as far as learning is evaluated as an iterative process, the set of initial conditions that lead to successful ventures switches from a continuum of values to a Cantor set.

Keywords: Bertrand competition; Duopoly; Learning; Firm agreements (search for similar items in EconPapers)
JEL-codes: D21 D43 L1 (search for similar items in EconPapers)
Pages: 22
Date: 2002-10-30
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:548.02

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