JOINT VENTURES AS A MEANS OF ASSEMBLING COMPLEMENTARY INPUTS

In recent years, economists have devoted considerable attention to mec hanisms through which firms can cooperate, particularly in the conduct of R&D. This literature had tended to focus on cooperation's effects in output markets. In contrast, the present analysis examines the effe cts of cooperation on input markets. In particular, joint ventures are often said to be motivated by the desire to assemble complementary as sets into a package needed to conduct a successful project. Some of th e ways in which joint ventures may faciliate the acquisition of needed inputs are explored.