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 …

Exclusive membership rule supports a more "concentrated" coalition structure and thus leads to higher industry R&D investments … for high spillovers than the Open Membership rule does. However, due to free-riding problems, the grand research coalition … research coalition set their R&D investments in order to maximise the aggregate profits of members of their coalition. The …