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Title of Journal: Theor Decis

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Abbravation: Theory and Decision

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Kluwer Academic Publishers

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10.1002/app.25918

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1573-7187

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Does trust matter for RampD cooperation A game

Authors: MarieLaure CabonDhersin Shyama V Ramani
Publish Date: 2005/03/21
Volume: 57, Issue: 2, Pages: 143-180
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Abstract

The game theoretical approach to RD cooperation does not investigate the role of trust in the initiation and success of RD cooperation it either assumes that firms are nonopportunists or that the RD 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 nonopportunist 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 RD alliances and contribute to their success The higher the spillovers the higher the level of trust required to initiate RD cooperation for nonopportunists while the inverse holds for opportunists

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