On Some Procedures of Forming a Multi-partner Alliance
AbstractWe study two different ways of forming multi-partner alliances between ﬁrms with the central idea that procedure is an important factor in multi-partner alliance formation. In the ﬁrst procedure, an alliance is formed simultaneously, while in the second, step-by-step procedure, members are added one by one. In the model we present, each ﬁrm is assumed to have a multidimensional maneuvering space, which consists of all alliance positions acceptable to the ﬁrm, and an ideal position in this space. Alliances will form between the ﬁrms whose maneuvering spaces overlap. The results of the analysis conﬁrm that procedure is an important factor in multi-partner alliance formation. Nevertheless, if ideal positions of ﬁrms are acceptable to all alliance partners, then the result of alliance formation does not depend on procedure. In addition, it is shown that it can be disadvantageous to be a ﬁrst mover. Finally, we are able to provide sufficient conditions under which one procedure is preferred in a three-partner case. More speciﬁcally, a ﬁrm with its ideal position acceptable to the two other ﬁrms may prefer the simultaneous procedure to being a late mover if (1) there is a certain balance in the ﬁrms' degree of ﬂexibility and their power and (2) if the agreed alliance position of the two other ﬁrms is acceptable to the ﬁrm in question.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00406461.
Date of creation: 2008
Date of revision:
Publication status: Published, Journal of Economics & Management Strategy / Journal of Economics and Management Strategy, 2008, 17, 2, pp. 443-487
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00406461/en/
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Procedures of Forming an Alliance;
Other versions of this item:
- Annelies de Ridder & Agnieszka Rusinowska, 2008. "On Some Procedures of Forming a Multipartner Alliance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(2), pages 443-487, 06.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Seidmann, Daniel J & Winter, Eyal, 1998. "A Theory of Gradual Coalition Formation," Review of Economic Studies, Wiley Blackwell, vol. 65(4), pages 793-815, October.
- Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan, vol. 22(4), pages 579-601, December.
- Steven Brams & Michael Jones & D. Kilgour, 2005.
"Forming stable coalitions: The process matters,"
Springer, vol. 125(1), pages 67-94, July.
- Asha Rao & Stuart M Schmidt, 1998. "A Behavioral Perspective on Negotiating International Alliance," Journal of International Business Studies, Palgrave Macmillan, vol. 29(4), pages 665-694, December.
- Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
- Robert Axelrod & Will Mitchell & Robert E. Thomas & D. Scott Bennett & Erhard Bruderer, 1995. "Coalition Formation in Standard-Setting Alliances," Management Science, INFORMS, vol. 41(9), pages 1493-1508, September.
- Eligius Hendrix & Annelies De Ridder & Agnieszka Rusinowska & Elena Saiz, 2013.
"Coalition formation: the role of procedure and policy flexibility,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Annelies De Ridder & Agnieszka Rusinowska & Elena Saiz & Eligius M.T. Hendrix, 2008. "Coalition formation: the role of procedure and policy flexibility," Post-Print halshs-00269093, HAL.
- Annelies de Ridder & Agnieszka Rusinowska & Elena Saiz & Eligius K.M. Hendrix, 2008. "Coalition formation: the role of procedure and policy flexibility," Working Papers 0806, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Jane M. Binner & Leslie R. Fletcher & Vassili Kolokoltsov & Francesco Ciardiello, 2013. "External Pressure on Alliances: What Does the Prisoners’ Dilemma Reveal?," Games, MDPI, Open Access Journal, vol. 4(4), pages 754-775, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.