Modelling collaboration formation with a Game Theory approach

Abstract

Collaboration, by definition, is a process where two or more parties (individuals or organizations) join resources and knowledge to achieve common goals. Globalization and competitiveness in today's market conditions compel firms to collaborate in order to reduce development costs and time-to-market. In order to model and analyze conditions under which collaborations are formed, this paper proposes to employ a game-theoretic approach, given that Game Theory attempts to model and analyze strategic situations, including various types of games suitable for different settings. A mathematical model is proposed for Collaborative Product Development and a Nash Bargaining solution is proposed in a numerical analysis. © 2011 Elsevier B.V., All rights reserved.