Easy or Tough Coopetition? Perspective of Coopetitive Real Options Games

Elżbieta Rychłowska-Musiał

Abstract

Cooperation between competing firms called coopetition has increasing relevance to business practice. However, firms and their managers who want to enjoy the benefits of coopetition are also aware of the risks that it entails. The key questions need to be answered: under which circumstances firms are willing to coopete and to keep the arrangement, what factors are decisive, and when benefits are most significant. In the paper, we are looking for answers to these questions on the basis of coopetitive real options games. We consider the case of two firms that can establish a coopetition arrangement to implement an investment project (each firm possesses a shared investment option). In the paper, we point out conditions under which coopetition between companies is easy, tough or impossible. The key factors are the project risk and the size of market shares. In particular, it is worth noting that for high-risk projects, the area of tough coopetition is larger than for low-risk projects. A large disproportion in market shares makes coopetition rather impossible.
Author Elżbieta Rychłowska-Musiał (WIiGE / KMS)
Elżbieta Rychłowska-Musiał,,
- Department of Applied Mathematics
Pages131-146
Publication size in sheets0.75
Book Tsounis Nicholas, Vlachvei Aspasia (eds.): Advances in Cross-Section Data Methods in Applied Economic Research: 2019 International Conference on Applied Economics (ICOAE 2019), Springer Proceedings in Business and Economics, 2020, Springer, ISBN 978-3-030-38252-0, [978-3-030-38253-7], 734 p., DOI:10.1007/978-3-030-38253-7
Keywords in PolishGry opcyjne, Opcja inwestycyjna, Koopetycja, Kooperencja
Keywords in EnglishReal options games, Investment option, Coopetition
DOIDOI:10.1007/978-3-030-38253-7_9
URL https://link.springer.com/chapter/10.1007/978-3-030-38253-7_9
Languageen angielski
Score (nominal)20
Score sourcepublisherList
ScoreMinisterial score = 20.0, 15-07-2020, ChapterFromConference
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