Competitor collaboration and product distinctiveness
AbstractCompetitors often collaborate by sharing a part of value-creating activities such as technology development, product design, and distribution, which are important elements for creating product distinctiveness. Competitor collaborations have recently been regarded as crucial issues by antitrust authorities. Although collaboration between competitors reduces their product distinctiveness, it may increase the distinctiveness between their products and a non-collaborator's product. Also, intensified competition between collaborators lowers their prices and imposes downward pressure on non-collaborator's pricing strategy. We demonstrated that the interaction between these effects yields rich antitrust implications for competitor collaborations and a new perspective on welfare consequences of partial ownership arrangements.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 30 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/505551
Antitrust; Competitor collaboration; Oligopoly; Partial ownership arrangement; Product distinctiveness; Value chain;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
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