A different approach is introduced to determine the value of an information-sharing agreement: the measure of risk aversion/loving. This approach reveals the relationship between information-sharing models and the risk literature. It also allows uncertainty regarding the slope of a firm's own...

Horizontal mergers are often driven by the desire to exploit R&D complementarities. We investigate the positive features of such a merger when oligopolists compete both in process R&D and on the product market. For a non-trivial degree of R&D complementarity, we show that the merger has the...