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Joint Venture for a New Product and Antitrust Exemptions

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  • Battaggion, Maria R
  • Garella, Paolo G

Abstract

The present paper analyses different forms of organising a JV for the introduction of a new product. It is shown that under non contractible effort levels by the parent companies, a non cooperative solution, due to free-riding, is less desirable than one where firms cooperate not only at the R&D but also at the selling stage. Also, allowing firms to set up a production JV may be an alternative way to improve upon the fully non cooperative solution. An Antitrust authority should therefore consider the possible destructive effects on the JV results of prohibitions of inter-firm cooperation. Copyright 2001 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Australian Economic Papers.

Volume (Year): 40 (2001)
Issue (Month): 3 (September)
Pages: 247-62

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Handle: RePEc:bla:ausecp:v:40:y:2001:i:3:p:247-62

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Cited by:
  1. Suetens, S., 2004. "Literature review: R&D cooperation in oligopoly with spillovers: An experimental economics approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3529827, Tilburg University.
  2. Neubecker, Leslie, 2003. "Does cooperation in manufactoring foster tacit collusion," Tübinger Diskussionsbeiträge 261, University of Tübingen, School of Business and Economics.
  3. Miguel Gonzalez-Maestre & Diego Penarrubia, 2005. "Cooperation versus competition in product innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 305-318.

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