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A Learning-Based Theory of Joint Venture Life-Cycles

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  • Prabal Roy Chowdhury

    (Jawaharlal Nehru University)

  • Indrani Roy Chowdhury

    (Jawaharlal Nehru University)

Abstract

We provide a two period, learning-based model of joint venture formation and breakdown. We show that depending on parameter values different dynamic patterns emerge. If the rate of learning is low, then a joint venture forms in both the periods. If the rate of learning is large, then the outcome may either involve joint venture breakdown, or delayed joint venture formation.

Suggested Citation

  • Prabal Roy Chowdhury & Indrani Roy Chowdhury, 2000. "A Learning-Based Theory of Joint Venture Life-Cycles," Group Decision and Negotiation, Springer, vol. 9(6), pages 457-470, November.
    • Handle: RePEc:spr:grdene:v:9:y:2000:i:6:d:10.1023_a:1008726920290
    DOI: 10.1023/A:1008726920290
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    Cited by:

    1. Ángeles Montoro-Sánchez & Marta Ortiz-de-Urbina-Criado & Ana M. Romero-Martínez, 2009. "The Decision to Use Alliances as Corporate Entrepreneurship: The Role of Resources and Skills," Group Decision and Negotiation, Springer, vol. 18(5), pages 431-448, September.
    2. Kabiraj, Tarun & Roy Chowdhury, Prabal, 2008. "Adoption of new technology and joint venture instability," Research in International Business and Finance, Elsevier, vol. 22(2), pages 108-123, June.
    3. Marjit, Sugata & Chowdhury, Prabal Roy, 2004. "Asymmetric capacity costs and joint venture buy-outs," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 425-438, July.
    4. Rituparna Kaushik & Sourabh Bikas Paul, 2021. "Strategic Interactions, Bargaining Power and Stability of Joint Venture in an Emerging Nation," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 543-564, December.
    5. Banerjee, Shantanu & Mukherjee, Arijit, 2010. "Joint venture instability in developing countries under entry," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 603-614, October.

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