Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1031555 | Journal of Air Transport Management | 2007 | 10 Pages |
Abstract
The wide-body long-range aircrafts market is characterized by increasing rivalry between Airbus and Boeing. One of the factors that drive their strategic behaviour is technological. We propose a technology indicator to identify conditions under which the aircraft companies have incentives to join a coalition. For this, we provide measurement of the side-payments necessary to sign a strategic alliance aimed at reducing technological barriers in the market. The results suggest that the existence of side-payments guarantees the stability of a strategic alliance if the gap in the technological level between the firms is high, or competition is through prices. For monopoly, a strategic alliance is profitable, but never stable.
Keywords
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Social Sciences and Humanities
Business, Management and Accounting
Strategy and Management
Authors
Maria Berrittella, Luigi La Franca, Vito Mandina, Pietro Zito,