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The Costs of Inter-Firm Networks

Author

Listed:
  • Alberto Zazzaro

Abstract

Scholars and economic observers suggest, almost unanimously, that inter-firm networks may possibly be a way to overcome the obstacles to the competitiveness of Italian industry represented by the small size of the firms. This paper points out that the same mechanism (i.e. the network) that favours cooperation among firms in achieving scale and scope economies and enjoying the benefits of agglomeration and information dissemination may have negative effects on agents inside and outside the network and decrease the static and dynamic efficiency of resource allocation.

Suggested Citation

  • Alberto Zazzaro, 2011. "The Costs of Inter-Firm Networks," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
  • Handle: RePEc:rar:journl:0228
    as

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    File URL: http://www.francoangeli.it/riviste/Scheda_rivista.aspx?IDArticolo=44265&Tipo=Articolo%20PDF&lingua=en
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    References listed on IDEAS

    as
    1. Alessia Amighini & Andrea F. Presbitero & Matteo G. Richiardi, 2010. "Delocalizzazione produttiva e mix occupazionale," LABORatorio R. Revelli Working Papers Series 104, LABORatorio R. Revelli, Centre for Employment Studies.
    2. Domenico SCALERA & Alberto ZAZZARO, 2010. "L'economia del Mezzogiorno. Nuova politica regionale, crisi globale e federalismo fiscale," Working Papers 337, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Domenico Scalera & Alberto Zazzaro, 2009. "Do Inter-Firm Networks Make Access to Finance Easier? Issues and Empirical Evidence," Mo.Fi.R. Working Papers 25, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    4. Alessandro Gambini & Emma Sarno & Alberto Zazzaro, 2012. "Composizione e struttura di rete tra le societa' quotate in Italia," Mo.Fi.R. Working Papers 63, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    5. David Gilo & Yossi Moshe & Yossi Spiegel, 2006. "Partial cross ownership and tacit collusion," RAND Journal of Economics, RAND Corporation, vol. 37(1), pages 81-99, March.
    6. Cowen, Tyler, 1992. "Law as a Public Good: The Economics of Anarchy," Economics and Philosophy, Cambridge University Press, vol. 8(02), pages 249-267, October.
    7. Cowen, Tyler, 1994. "Rejoinder to David Friedman on the Economics of Anarchy," Economics and Philosophy, Cambridge University Press, vol. 10(02), pages 329-332, October.
    8. Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, vol. 86(4), pages 830-851, September.
    9. Thomas W. Ross, 2009. "Sustaining Cooperation with Joint Ventures," Journal of Law, Economics, and Organization, Oxford University Press, vol. 25(1), pages 31-54, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Inter-firm networks; Costs of cooperation; Public bad; Firms’ behaviour;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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