The Costs of Inter-Firm Networks
AbstractScholars and economic observers suggest, almost unanimously, that inter-firm networks may possibly be a way to overcome the obstacles to the competitiveness of Italian industry represented by the small size of the firms. This paper points out that the same mechanism (i.e. the network) that favours cooperation among firms in achieving scale and scope economies and enjoying the benefits of agglomeration and information dissemination may have negative effects on agents inside and outside the network and decrease the static and dynamic efficiency of resource allocation.
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Bibliographic InfoArticle provided by Associazione Rossi Doria in its journal QA.
Volume (Year): (2011)
Issue (Month): 4 (December)
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More information through EDIRC
Inter-firm networks; Costs of cooperation; Public bad; Firms’ behaviour;
Find related papers by JEL classification:
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
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