We examine the endogenous formation of research coalitions among symmetric firms. In our model, the number of research joint ventures and their sizes are determined endogenously. Members of a research coalition set their R amp; D investments in order to maximize the aggregate profits of members...

This paper surveys the recent literature on the endogenous formation of economic coalitions, in particular, the partition function literature that allows for externalities across coalitions. Various economic coalitions are classified either as coalitions with positive externalities (output...