LARROSA Juan Manuel Ceferino
congresos y reuniones científicas
Network of Collaboration in Oligopolies: The Stackelberg Case
LARROSA, JUAN M.C.; TOHMÉ, FERNANDO
Jornada; VII Jornada de Difusión de Investigaciones; 2004
Instituto de Economía - Universidad Nacional del Sur
Networks of collaboration among firms are part of modern management policies. They are particularly well suited for industries with processes with high fixed cost, for example, for research and developing a product. Pharmaceutical and chemical industries are main examples of this case. Research and development processes are highly resource demanding and, under diverse circumstances, uncertain about the attainable final output. Hence, incentives for cost reduction association are clearly present. Billand and Bravard (2004) modeled with directed graphs a network of collaboration in a market under quantity (Cournot) and price (Bertrand) competition. We extend their results for the Stackelberg case, where a leader firm determines its optimal connection and a follower adjust its connectivity to the former both subjects to quantity competition.