FEEM working papers "Note di lavoro" series
2005 .010

Cost-Reducing Alliances and Local Spillovers

Authors: Frédéric Deroian
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Oligopoly,Cost-Reducing alliances,Local spillovers,Network stability
JEL n.: C70,L13,L20
JEL: Research in Economics
Pages: Vol.62, No.1, pp.34-44
Date: 03/2008


Firms raise cost-reducing alliances before competing with each other, but cannot fully internalize the shared knowledge. When spillovers are local and transit through the network of alliances, stable architectures with a moderate level of asymmetry are identified.

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