Hattori, Keisuke and Lin, Ming Hsin (2010): Alliance Partner Choice in Markets with Vertical and Horizontal Externalities.
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This study investigates the choice between complementary and parallel alliances in a market with vertical and horizontal externalities. One composite goods firm competes with two components producers, each providing a complementary component of a differentiated com- posite good. Although the joint profits from a parallel alliance between the composite goods firm and a components producer are always larger than those from a complementary alliance between components producers, through Nash bargaining, a components producer prefers the complementary (parallel) alliance when the degree of product differentiation is sufficiently large (small). Combined with the result that a complementary alliance is socially preferable, our findings provide meaningful implications for antitrust policy.
|Item Type:||MPRA Paper|
|Original Title:||Alliance Partner Choice in Markets with Vertical and Horizontal Externalities|
|Keywords:||Complementary alliance; Parallel alliance; Nash bargaining; Antitrust policy|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
L - Industrial Organization > L4 - Antitrust Issues and Policies > L41 - Monopolization; Horizontal Anticompetitive Practices
|Depositing User:||Keisuke Hattori|
|Date Deposited:||10. Oct 2010 01:55|
|Last Modified:||15. Feb 2013 23:26|
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