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Uncertain equilibrium analysis on profits distribution between partner firms in competitive strategic alliances

Yong LongContact Information, Jin Peng2 and Kakuzo IwamuraContact Information

(1)  College of Economics and Business Administration, Chongqing University, Chongqing, 400044, China
(2)  College of Mathematics and Information Science, Huanggang Normal University, Huanggang, 438000, China
(3)  Department of Mathematics, Josai University, Sakado, Saitama 350-0248, Japan

Published online: 16 September 2008

Abstract  There exist many uncertain factors in profits distribution between partner firms in competitive strategic alliances. On the basis of Rubinstein theorem, a method of Choquet integral is used to analyze the uncertain equilibrium of profits distribution between partner firms in competitive strategic alliances with the introduction of Choquet Expected Utility theory in uncertain analysis. It is found that the result of this method is much closer to reality. The conclusion also shows that partner firms will have weaker bargaining power if they have higher dependence to alliances. And, “first-mover advantage” in Rubinstein theorem does not always exist.

Keywords  Competitive strategic alliances - Profits distribution - Equilibrium under uncertainty - Choquet integral


Contact Information Yong Long (Corresponding author)
Email: Longyong@cqu.edu.cn

Contact Information Kakuzo Iwamura
Email: kiwamura@math.josai.ac.jp
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