Strategic alliances, joint investments, and market structure

Arbeitspapier

This paper examines strategic alliances (SAs) involving joint investments in and sharing of production capacity. We consider a situation where market entry is limited by the availability of an essential production capacity. New capacity becomes sequentially available, and the incumbent firms may form a strategic alliance in order to jointly invest in it. In this setting, SAs may influence competition in the product market by affecting market entry. We characterize the evolution of the market structure. We also show that SAs need not be anticompetitive. That is, banning SAs may lead to a more concentrated market structure than what would otherwise be the case.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ETLA Discussion Papers ; No. 871

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Monopoly; Monopolization Strategies ; Oligopoly and Other Imperfect Markets
• Thema: Strategic alliances ; Oligopoly ; Preemptive investment ; Strategiset liittoutumat ; Oligopoli ; Strategische Allianz ; Oligopol ; Investition

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Eerola, Essi ; Määttänen, Niku
• Ereignis: Veröffentlichung
• (wer): The Research Institute of the Finnish Economy (ETLA)
• (wo): Helsinki
• (wann): 2003

Weitere Informationen

• Handle: http://hdl.handle.net/10419/63928
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ