Manuscripts:
Well... the pipeline is almost empty!
That's what a sabbatical is for.
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Why aren't there more R&D Joint Ventures?
with Abhinay Muthoo
Abstract:
Why are there are not more R&D joint ventures? We provide an
answer to this question based on two key ideas. The principal idea
is that such ventures may diminish the power of a some firms in
the product market. The second is that certain kinds of
transaction costs are present, which do not allow for this
deteriorating market power to be compensated for. We show that the
larger the shift in the firms' relative market power
following an R&D joint venture, the more likely it is that
such (efficiency-enhancing) R&D joint ventures will not take be undertaken.
Available as PDF file.