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Cost-Reducing Alliances and Local Spillovers

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  • Frédéric Deroian

    (F.O.R.U.M Université Paris X)

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    Abstract

    Firms raise cost-reducing alliances before competing with each other, but cannot fully internalize the shared knowledge. When spillovers are local and transit through the network of alliances, stable architectures with a moderate level of asymmetry are identified.

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    File URL: http://www.feem.it/userfiles/attach/Publication/NDL2005/NDL2005-010.pdf
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    Bibliographic Info

    Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.10.

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    Date of creation: Jan 2005
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    Handle: RePEc:fem:femwpa:2005.10

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    Related research

    Keywords: Oligopoly; Cost-Reducing alliances; Local spillovers; Network stability;

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    1. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    2. Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
    3. Calvo-Armengol, Antoni, 2004. "Job contact networks," Journal of Economic Theory, Elsevier, vol. 115(1), pages 191-206, March.
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