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On the Stability of Research Joint Ventures: Implications for Collusion

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  • Seldeslachts, Jo
  • Duso, Tomaso
  • Pennings, Enrico

Abstract

Though there is a body of theoretical literature on research joint ventures (RJV) participation facilitating collusion, empirical tests are rare. Even more so, there are few empirical tests on the general theme of collusion. This note tries to fill this gap by assuming a correspondence between the stability of research joint ventures and collusion. By using data from the US Nation Cooperation Research Act, we show that large RJVs in concentrated industries are more stable and hence more suspect to collusion.

Suggested Citation

  • Seldeslachts, Jo & Duso, Tomaso & Pennings, Enrico, 2008. "On the Stability of Research Joint Ventures: Implications for Collusion," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 240, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:240
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    References listed on IDEAS

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    1. Vonortas, Nicholas S., 1997. "Research joint ventures in the US," Research Policy, Elsevier, vol. 26(4-5), pages 577-595, December.
    2. Duso, Tomaso & Pennings, Enrico & Seldeslachts, Jo, 2007. "The Dynamics of Research Joint Ventures: A Panel Data Analysis," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 221, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    3. Martin, Stephen, 1996. "R & D joint ventures and tacit product market collusion," European Journal of Political Economy, Elsevier, vol. 11(4), pages 733-741, April.
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    5. Ordover, Janusz A & Baumol, William J, 1988. "Antitrust Policy and High-Technology Industries," Oxford Review of Economic Policy, Oxford University Press, vol. 4(4), pages 13-34, Winter.
    6. Cabral, Luis M. B., 2000. "R&D cooperation and product market competition," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1033-1047, October.
    7. Helder Vasconcelos, 2004. "Entry Effects on Cartel Stability and the Joint Executive Committee," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 219-241, May.
    8. Reuer, Jeffrey J. & Zollo, Maurizio, 2005. "Termination outcomes of research alliances," Research Policy, Elsevier, vol. 34(1), pages 101-115, February.
    9. B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
    10. Thomas W. Ross, 2009. "Sustaining Cooperation with Joint Ventures," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 25(1), pages 31-54, May.
    11. Deepak K. Sinha & Michael A. Cusumano, 1991. "Complementary Resources and Cooperative Research: A Model of Research Joint Ventures Among Competitors," Management Science, INFORMS, vol. 37(9), pages 1091-1106, September.
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    1. Banal-Estañol, Albert & Duso, Tomaso & Seldeslachts, Jo & Szücs, Florian, 2022. "R&D spillovers through RJV cooperation," Research Policy, Elsevier, vol. 51(4).

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    More about this item

    Keywords

    research joint ventures; product market collusion; empirical test;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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