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The Gains from Forming a Joint Venture in a New Market with Rivals in an Existing Market: the Bertrand Case

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Listed:
  • Van Long, N.
  • Soubeyran, A.

Abstract

We show that under Bertrand competition, firms may have an incentive to transfer real ressources to a joint venture operating in an unrelated market. The optimal transfers are typically asymmetric, in order to reduce the extent of rivalry in the oligopoly.

Suggested Citation

  • Van Long, N. & Soubeyran, A., 1996. "The Gains from Forming a Joint Venture in a New Market with Rivals in an Existing Market: the Bertrand Case," G.R.E.Q.A.M. 96a36, Universite Aix-Marseille III.
  • Handle: RePEc:fth:aixmeq:96a36
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    References listed on IDEAS

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    More about this item

    Keywords

    MARKET STRUCTURE; OLIGOPOLIES;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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