Prabal Roy Chowdhury and Indrani Roy Chowdhury

"A theory of joint venture life-cycles "

JEL codes: F23; L13
Keywords: Joint ventures; Learning; Synergy; Moral hazard

Abstract: In this paper we provide a theory of joint venture life cycle that relies on synergy, organizational learning, and moral hazard. We demonstrate that depending on parameter values the outcome may involve any one of the following: stable joint venture formation, joint venture formation followed by breakdown, or Cournot competition in all the periods. We also provide some interesting welfare results