COLLABORATION AMONG COMPETING FIRMS - An Application Model about Decision Making Strategy

Marco Remondino, Marco Pironti

Abstract

To understand the adoption of collaborative systems, it is of great importance to know about economical effects of collaboration itself. Decision makers should be able to evaluate potential drawbacks and advantages of collaboration: strategies may be seen as a mixture of cost reduction, product differentiation and improvement of decision making and/or planning. In this context information technology may help a firm to create sustaining competitive advantages over competitors. It is less clear whether collaboration is of any use in such an environment. According to the Economics literature, the most important factors affecting benefits of collaboration are market structure, kind and degree of uncertainty faced by the firms, their risk preferences and the collaboration propensity. The results depend on the way these factors are combined. We present a microeconomic model and use techniques from game theory for the analysis. The way the model is constructed will allow the derivation of closed-form solutions. Traditional learning models can't represent individualities in a social system, or else they represented all of them in the same way – i.e.: as focused and rational agents; they don’t represent individual inclinations and preferences. Results indicating whether collaboration in various areas makes sense will be obtained. This makes it possible to judge the potential of available collaborative technology. The basic presented model may be extended in various ways.

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Paper Citation


in Harvard Style

Remondino M. and Pironti M. (2010). COLLABORATION AMONG COMPETING FIRMS - An Application Model about Decision Making Strategy . In Proceedings of the 6th International Conference on Web Information Systems and Technology - Volume 2: WEBIST, ISBN 978-989-674-025-2, pages 387-391. DOI: 10.5220/0002796903870391


in Bibtex Style

@conference{webist10,
author={Marco Remondino and Marco Pironti},
title={COLLABORATION AMONG COMPETING FIRMS - An Application Model about Decision Making Strategy},
booktitle={Proceedings of the 6th International Conference on Web Information Systems and Technology - Volume 2: WEBIST,},
year={2010},
pages={387-391},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0002796903870391},
isbn={978-989-674-025-2},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 6th International Conference on Web Information Systems and Technology - Volume 2: WEBIST,
TI - COLLABORATION AMONG COMPETING FIRMS - An Application Model about Decision Making Strategy
SN - 978-989-674-025-2
AU - Remondino M.
AU - Pironti M.
PY - 2010
SP - 387
EP - 391
DO - 10.5220/0002796903870391