Knowledge transfer and partial equity ownership

• 成果类型: Article
• 署名作者: Ghosh, Arghya; Morita, Hodaka
• 署名单位: University of New South Wales Sydney
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12213
• 发表日期: 2017
• 页码: 1044-1067
• 关键词: strategic alliances; joint ventures; entry deterrence; development networks; horizontal merger; oligopoly; MARKET; firm; collusion

摘要

An alliance often involves one firm acquiring an equity stake in its alliance partner. We explore oligopoly models that capture the link between knowledge transfer and partial equity ownership (PEO), where alliance partners can choose the level of PEO. PEO can increase the alliance partners' profitability by inducing knowledge transfer, but the PEO itself reduces their joint profit because it induces other firms to take more aggressive actions. This trade-off endogenously determines the level of PEO, which can benefit consumers and/or improve welfare. Given the growing antitrust interest in PEO, we explore the antitrust implications of our analysis.