Annelies De Ridder (Radboud University Nijmegen - Radboud University Nijmegen) Agnieszka Rusinowska () (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
Abstract
We 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.
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Paper provided by HAL in its series Post-Print with number
halshs-00406461_v1.
Length: 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 Handle: RePEc:hal:journl:halshs-00406461_v1
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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.
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