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 …

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