This paper analyses endogenous formation of technology sharing coalitions with asymmetric firms. Coalition partners … market. The equilibrium coalition outcome is either between the two most efficient firms, or a coalition with all three firms …. The two-firm coalition is the preferred outcome of a welfare maximising authority if ex ante marginal cost is sufficiently …

there is no co-operation in the product market. We show that the equilibrium coalition outcome is either one between the two …This paper analyses the endogenous formation of technology sharing coalitions with asymmetric firms. Coalition partners … most efficient firms, or a coalition with all three firms. The two-firm coalition is the preferred outcome of a welfare …