Cooperation Between Businesses
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The document discusses various forms of cooperation between businesses, including joint ventures, industry standards, open source movements, and cooperatives. It notes benefits of cooperation such as lower unit costs, dynamic efficiency gains, reductions in poverty, and social welfare gains. However, it clarifies that cooperation differs from collusion. The document also examines factors that build trust between parties in cooperative agreements, such as mutual affection, pro-social dispositions, reputation effects, and external enforcement.
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Cooperation Between Businesses
- 1. A2 Micro Co-operation in Markets Tutor2u, Summer 2013
- 2. Co-operation in Markets Joint Ventures Industry Standards Open Source Movement Co- operatives
- 3. NETWORK SHARING Vodafone and Telefonica FUEL CELL RESEARCH Toyota and BMW AIRLINES Star Alliance Joint Ventures – a huge rise in these business agreements – an alternative to merger/takeover
- 4. Business / Industry Co-operation
- 5. Gains from Co-operation Lower Unit Costs Dynamic Efficiency Fall in Poverty Social Welfare Gains Ethical Business Co-operation is not the same as collusion
- 6. Gains from Co-operation Lower Unit Costs Dynamic Efficiency Fall in Poverty Social Welfare Gains Ethical Business Co-operation is not the same as collusion
- 7. Gains from Co-operation Lower Unit Costs Dynamic Efficiency Fall in Poverty Social Welfare Gains Ethical Business Co-operation is not the same as collusion
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- 10. Gains from Co-operation Lower Unit Costs Dynamic Efficiency Fall in Poverty Social Welfare Gains Ethical Business Co-operation is not the same as collusion The rise of the collaborative economy
- 11. Trust • 1/ Mutual affection (the implicit understand that comes from loving relationships) • 2/ Pro-social disposition (I might feel bad about letting someone else down, our incentives to be honest) • 3/ Mutual reinforcement (e.g. punishments for broken promises, withholding future cooperation) • 4/ Reputation (reputations can be built or undermined when transactions are repeated on many occasions, brand values) • 5/ External enforcement (an impersonal approach to changing behaviour, verification, witness statements, the rule of law, legal institutions and enquiries)
- 12. Get help from fellow students, teachers and tutor2u on Twitter: @tutor2u_econ