Joint Venture and Adoption of New Technology: The Eect of Bargaining, Control and Demand Shift

摘要: We consider a joint venture between local firm from less developed country and foreign multinational. In dynamic two period model, we demonstrate that the availability of new technology could trigger breakdown. The outcome may also involve not being adopted at all. possibility breakdown is greater when has large discount factor investment cost for relatively small. Moreover, an upward shift demand increases likelihood On other hand, neither control, nor bargaining power affects incentive However, they do affect pattern adoption in case JV survives. Finally, show increase level lead to JV. JEL Classification Numbers: F21, F23, L13, O33. Key-words: Joint breakdown, adoption, subsidiary, bargaining.