Does trust matter for R&D cooperation? A game theoretic examination

Theory and Decision 57 (2):143-180 (2004)

Authors
C. Marie
Indiana University
Abstract
The game theoretical approach to R&D cooperation does not investigate the role of trust in the initiation and success of R&D cooperation: it either assumes that firms are non-opportunists or that the R&D cooperation is supported by an incentive mechanism that eliminates opportunism. In contrast, the present paper focuses on these issues by introducing incomplete information and two types of firms: opportunist and non-opportunist. Defining trust as the belief of each firm that its potential collaborator will respect the contract, it identifies the trust conditions under which firms initiate R&D alliances and contribute to their success. The higher the spillovers, the higher the level of trust required to initiate R&D cooperation for non-opportunists, while the inverse holds for opportunists
Keywords Non-cooperative game  R&D cooperation  Trust and opportunism
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Reprint years 2005
DOI 10.1007/s11238-004-3673-7
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