Ursula F. Ott provides a theoretical approach to the life cycle of an International Joint Venture (IJV). IJV's are a special form of Multinational Enterprise (MNE), which combines the resources of a local and foreign firm to create a third independent business entity. While there are important gains of an IJV, the failure rate is high. On the basis of game theoretical reasoning, problems and issues of co-operation and conflicts are analysed. Game theory is considered as a useful strategic tool for solving problems in multi-person decision-making scenarios. Thus, its refinements offer robust insights. The book envisages problems by using game theoretical concepts to distinguish conflicting and co-operating elements in the IJV formation, management and even termination process. Solution concepts are then based on rigorous theoretical tools such as common agency theory, contract/incentive theory and repeated games, which are refinements of game theory.

List of Tables
List of Figures
Acknowledgment
Introduction
Theoretical Underpinning
The Rules of the IJV Games
A General Framework for Multi-person Decision-Making
Static Common Agency
Dynamic Common Agency
Termination Scenarios in the Last Stage of an IJV Life Cycle
Conclusion
Mathematical Appendix
Bibliography
Index

URSULA F. OTT is a Lecturer in International Business at Loughborough University Business School, UK. She obtained her PhD in Economics and Social Sciences at the University of Vienna. She was previously an Assistant Professor at the University of Vienna and a Research Scholar at the London School of Economics and Political Science. She has published in refereed journals and made contributions to conferences in International Business and Game Theory.