Purpose – The purpose of this paper is to study the question of pre‐emptive merger decisions in a composite good framework where these goods have both competitive and complementary features. Design/methodology/approach – The paper constructs a model of partial mergers when there are three...

Purpose The purpose of this paper is to show that outsourcing can occur as outcome of a separating or pooling perfect Bayesian equilibrium although it is not profitable under complete information. Therefore, asymmetric information can itself be a reason for outsourcing....

Purpose – The purpose of this paper is to study the question of pre-emptive merger decisions in a composite good framework where these goods have both competitive and complementary features. Design/methodology/approach – The paper constructs a model of partial mergers when there are three...

We consider a joint venture between a local firm from a less developed country, and a foreign multinational. In a dynamic two period model, we demonstrate that the availability of new technology can trigger a joint venture breakdown, a result that is consistent with the empirical evidence. We...