TY  - JOUR
AU  - Raubitschek,Ruth R.
AU  - Spencer,Barbara J.
TI  - High-Cost Domestic Joint Ventures and International Competition: Do     Domestic Firms Gain?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4804
PY  - 1994
Y2  - July 1994
UR  - http://www.nber.org/papers/w4804
L1  - http://www.nber.org/papers/w4804.pdf
N1  - Author contact info:
Barbara J. Spencer
University of British Columbia
Sauder School of Business
2053 Main Mall
Vancouver, BC  V6T 1Z2
CANADA
Tel: 604/822-8479
Fax: 604/822-8477
E-Mail: barbara.spencer@sauder.ubc.ca
AB  - This paper develops the idea that when markets are imperfectly competitive, final producers may gain from a joint venture that produces part of their input requirements even though marginal cost exceeds the input's market price.  Production by the joint venture lowers the market price of the input and this can raise profits sufficiently from final product sales to make the joint venture worthwhile.  Also, use of a joint venture internalizes the positive externality from a lower input price.  These results are motivated by a setting in which domestic firms are dependent on foreign oligopolistic suppliers for a key input.
ER  -