We use an infinitely repeated prisoner's dilemma model to examine the role of inter-partner credible threat in international joint ventures (IJVs). Inter-partner credible threat refers to the certainty of either partner's retaliation given the other partner's earlier cheating. We argue that...

By providing a nearly instant connection among parties at opposite corners of the world and enabling a variety of commercial exchanges, the Internet emerged as the technology expected to create a truly global market space. Internet firms faced the challenge of capitalizing on this development....