On R&D Alliances Structure with Sequential Investment
The paper investigates R&D alliance structure with Sequential Investment, which are often found in reality such as exclusive ownership, joint ownership and option contracts R&D alliance structures. Firstly, the optimal investment levels of two partners are presented under each alliance structure, respectively. Next, the optimal proportion of equity stakes under joint ownership and the optimal option contract are discussed in the paper. Finally, the paper show that a properly designed option contract leads two partners to invest strictly more than under joint ownership, so that it becomes easier to attain their first-best investment levels. The results offer a theoretical explanation that why there were more option contracts R&D alliance structures than joint ownership in reality.
R&D alliance Joint ownership Option contracts Optimal investment level
Xue Minggao Gong Pu
Department of finance, school of management, Huazhong University of Science and Technology, P.R.China, 430074
国际会议
第六届管理学国际会议(Proceedings of ICM2007 the 6th International on Management)
武汉
英文
1200-1209
2007-08-03（万方平台首次上网日期，不代表论文的发表时间）