Information Sharing and the Stability of Cooperation in Research Joint Ventures

Gamal Atallah

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a four-stage game-theoretic framework, firms decide on participation in a RJV, information sharing, R&D expenditures, and output. An important feature of the model is that voluntary information sharing between cooperating firms increases information leakage from the RJV to outsiders. It is found that it is the spillover from the RJV to outsiders which determines the decision of insiders whether to share information, while it is the spillover affecting all firms which determines the level of information sharing within the RJV. RJVs representing a larger portion of firms in the industry are more likely to share information. It is also found that when sharing information is costless, firms never choose intermediate levels of information sharing : they share all the information or none at all. The size of the RJV is found to depend on three effects : a coordination effect, an information sharing effect, and a competition effect. Depending on the relative magnitudes of these effects, the size of the RJV may increase or decrease with spillovers. The effect of information sharing on the profitability of firms as well as on welfare is studied.

Keywords: endogenous R&D sllovers; information sharing; R&D cooration; research joint ventures (search for similar items in EconPapers)
JEL-codes: O31 O32 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://hdl.handle.net/1866/341 (application/pdf)

Related works:
Journal Article: Information sharing and the stability of cooperation in research joint ventures* (2003)
Working Paper: Information Sharing and the Stability of Cooperation in Research Joint Ventures (2002)
Working Paper: Information sharing and the stability of cooperation in research joint ventures (2002)
Working Paper: Information Sharing and the Stability of Cooperation in Research Joint Ventures (2000)
Working Paper: Information Sharing and the Stability of Cooperation in Research Joint Ventures (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:mtl:montde:2000-17

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