Modeling collaboration formation with a game theory approach

Arsenyan J., BÜYÜKÖZKAN FEYZİOĞLU G., FEYZİOĞLU O.

EXPERT SYSTEMS WITH APPLICATIONS, vol.42, no.4, pp.2073-2085, 2015 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 42 Issue: 4
  • Publication Date: 2015
  • Doi Number: 10.1016/j.eswa.2014.10.010
  • Journal Name: EXPERT SYSTEMS WITH APPLICATIONS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.2073-2085
  • Keywords: Collaborative product development, Game theory, Nash Bargaining, Revenue sharing, Collaboration level, Collaboration strategy, RESEARCH-AND-DEVELOPMENT, DECISION-MAKING, PRODUCT, COOPERATION, INNOVATION, REVENUE, DESIGN, PARTNERSHIP, CONTRACT
  • Galatasaray University Affiliated: Yes

Abstract

While collaborative product development (CPD) is adopted by more and more firms as a business strategy, there is still lack of thorough research on the conditions under which the collaboration is formed. This paper proposes a mathematical model integrating trust, coordination, co-learning, and co-innovation dimensions of CPD. These dimensions, as well as additional parameters such as knowledge investment, absorption capability, efficacy, and complementarity enable the observation of the collaboration behavior under various scenarios. An analysis is conducted with Nash Bargaining approach to investigate the effect of various parameters on the collaboration formation as well as the revenue sharing. The analysis summary presents the optimum strategies for each scenario. (C) 2014 Elsevier Ltd. All rights reserved.