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Competition and industrial coordination

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Author Info

  • Jackie Krafft

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)

  • Jacques-Laurent Ravix

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis)

Abstract

This chapter aims at studying the adjustment process implemented by competing firms. The process of competition between firms may lead to different positions. Competition may arrive at perfect coordination and the adjustment process exhibits a convergence to an equilibrium. Competition may also imply a more problematic position of imperfect coordination and the emergence of durable and cumulative disequilibria. In both situations, specific institutional arrangements such as mergers and acquisitions, cooperation and alliances have to be elaborated by firms to prevent the occurrence of these disequilibria and, to some extent, to organise the process of competition. In fact, the role of business institutions is different with respect to each type of coordination. Being considered as a simple response to market failures when coordination is perfect, they must be endowed with a more endogenous status when coordination is imperfect.

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File URL: http://hal.archives-ouvertes.fr/docs/00/21/22/87/PDF/COMPETITION-chapter7-ELGAR-2000.pdf
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Bibliographic Info

Paper provided by HAL in its series Post-Print with number hal-00212287.

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Date of creation: 2000
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Publication status: Published, The Process of Competition, Edward Elgar (Ed.), 2000, 143-164
Handle: RePEc:hal:journl:hal-00212287

Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00212287/en/
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Cited by:
  1. Jean-Luc Gaffard & Jackie Krafft, 2001. "Telecommunications: understanding the dynamics of the organization of the industry," Post-Print hal-00203655, HAL.
  2. Jackie Krafft & Jacques-Laurent Ravix, 2005. "The governance of innovative firms: An evolutionary perspective," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(3), pages 125-147.

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