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Domestic and International Research Joint Ventures: The Effect of Collusion

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  • Flores-Fillol, Ricardo
  • Ibañez-Zarate, Guiomar
  • Theilen, Bernd, 1965-

Abstract

We analyze the effect of research joint ventures (RJVs) on consumer welfare in an international context when collusion can occur. The main novelty of our analysis is to study the differentiated effect of domestic and international RJVs. The recent literature shows that RJVs with collusion harm consumers. However, our results introduce a qualifi cation to this statement: international RJVs with collusion might be bene ficial for consumers when internationalization costs are high. The EU and US competition policy advises against RJVs that facilitate collusion on the grounds of their expected negative effects. Our results suggest that antitrust authorities should distinguish between domestic and international RJVs and, in certain cases, be more benevolent with international RJVs. Keywords: collusion; domestic research joint venture; international research joint venture JEL Classi fication Numbers: K21, L24, L44, O32

Suggested Citation

  • Flores-Fillol, Ricardo & Ibañez-Zarate, Guiomar & Theilen, Bernd, 1965-, 2013. "Domestic and International Research Joint Ventures: The Effect of Collusion," Working Papers 2072/211880, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/211880
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    References listed on IDEAS

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    Cited by:

    1. Ibañez-Zarate, Guiomar, 2015. "The determinants of partner choice for cooperative innovation: The effect of competition," Working Papers 2072/252214, Universitat Rovira i Virgili, Department of Economics.
    2. Ibáñez Zarate, Guiomar, 2014. "Innovation and horizontal mergers in a vertically related industry," Working Papers 2072/242274, Universitat Rovira i Virgili, Department of Economics.

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    More about this item

    Keywords

    Competència econòmica -- Dret i legislació; Aliança d'empreses; Innovacions tecnològiques -- Direcció i administració; Investigació industrial -- Direcció i administració; 33 - Economia;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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