On bilateral agreements: just a matter of matching
This paper aims at assessing the importance of the initial technological endowments when firms decide to establish a technological agreement. We propose a Bertrand duopoly model where firms evaluate the advantages they can get from the agreement according to its length. Allowing them to exploit a learning process, we depict a strict connection between the starting point and the final result. Moreover, as far as learning is evaluated as an iterative process, the set of initial conditions that lead to successful ventures switches from a continuum of values to a Cantor set.
|Date of creation:||30 Oct 2002|
|Date of revision:|
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- Edward E Leamer & Michael Storper, 2001.
"The Economic Geography of the Internet Age,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 32(4), pages 641-665, December.
- Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
- Perez-Castrillo, J. David & Sandonis, Joel, 1997. "Disclosure of know-how in research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 51-75, February.
- Bureth, Antoine & Wolff, Sandrine & Zanfei, Antonello, 1997. "The two faces of learning by cooperating: The evolution and stability of inter-firm agreements in the European electronics industry," Journal of Economic Behavior & Organization, Elsevier, vol. 32(4), pages 519-537, April.
- Jeroen Hinloopen, 1997. "Subsidizing cooperative and noncooperative R&D in duopoly with spillovers," Journal of Economics, Springer, vol. 66(2), pages 151-175, June.
- Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, December.
- Veugelers, Reinhilde & Kesteloot, Katrien, 1994. "On the design of stable joint ventures," European Economic Review, Elsevier, vol. 38(9), pages 1799-1815, December.
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