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Can R&D alliances facilitate the formation of a cartel? The example of the European IT industry

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  • Wegberg,M.,van

    (METEOR)

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    Abstract

    Firms may coordinate their R&D decisions by a merger or an R&D alliance. The European Union stimulates R&D alliances. It expects that these stimulate R&D investments, and guarantee that the cooperating firms compete in the product market. The alliances may, however, stimulate firms to collude in the product market. Alliances then point to emerging cartels. The paper explores the conditions where this fear holds.

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    File URL: http://edocs.ub.unimaas.nl/loader/file.asp?id=402
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    Bibliographic Info

    Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 004.

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    Date of creation: 1995
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    Handle: RePEc:dgr:umamet:1995004

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    Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

    Related research

    Keywords: research and development ;

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    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
    2. De Bondt, Raymond & Veugelers, Reinhilde, 1991. "Strategic investment with spillovers," European Journal of Political Economy, Elsevier, vol. 7(3), pages 345-366, October.
    3. Hagedoorn, John & Schakenraad, Jos, 1993. "A comparison of private and subsidized R&D partnerships in the European information technology industry," Open Access publications from Maastricht University urn:nbn:nl:ui:27-4311, Maastricht University.
    4. Davidson, Carl & Deneckere, Raymond, 1984. "Horizontal mergers and collusive behavior," International Journal of Industrial Organization, Elsevier, vol. 2(2), pages 117-132, June.
    5. John Hagedoorn & Jos Schakenraad, 1993. "A Comparison of Private and Subsidized R&D Partnerships in the European Information Technology Industry," Journal of Common Market Studies, Wiley Blackwell, vol. 31(3), pages 373-390, 09.
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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.

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