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Coalitions and Networks in Industrial Organization

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  • Francis Bloch

Abstract

This paper provides a selective survey of recent approaches to coalition and network formation in industrial organization, and offers a unified framework in which the different approaches can be compared. We focus on two extreme forms of cooperation—collusive agreements and cost‐reducing alliances. We show that bilateral negotiations yield higher levels of cooperation than multilateral agreements, that the formation of a cartel depends on the sequentiality of the procedure of coalition formation, and that the size of alliances depends on the membership rule.

Suggested Citation

  • Francis Bloch, 2002. "Coalitions and Networks in Industrial Organization," Manchester School, University of Manchester, vol. 70(1), pages 36-55, January.
  • Handle: RePEc:bla:manchs:v:70:y:2002:i:1:p:36-55
    DOI: 10.1111/1467-9957.00282
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