Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: http://www.sciepub.com/journal/jfe Editor-in-chief: Suman Banerjee
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Journal of Finance and Economics. 2021, 9(2), 73-76
DOI: 10.12691/jfe-9-2-4
Open AccessArticle

Equity Holding, Technology Sharing and Supplier Investment

Guozhao Cao1, and Kaili Song1

1School of Economics and Management, Shanxi Univesity, Taiyuan, China

Pub. Date: May 25, 2021

Cite this paper:
Guozhao Cao and Kaili Song. Equity Holding, Technology Sharing and Supplier Investment. Journal of Finance and Economics. 2021; 9(2):73-76. doi: 10.12691/jfe-9-2-4

Abstract

Consider a supply chain consists of one supplier and two manufactures, we discuss the influence of manufacturer’s technology sharing on supplier’s technology investment decision, and the impact of equity holding on the first two by constructing a multi-stage game between a supplier and two manufacturers. The results show that when the investment cost is relatively high, the manufacturer will choose to open technology to induce supplier investment in open technology. Otherwise, it will choose to close technology to force the supplier investment in both technologies. We also find that when the spillover effect is small, the probability that the manufacturer choosing to open technology and the supplier investing in the open technology decreases first and then increases with the shareholding ratio.

Keywords:
supply chain equity holding technology sharing supplier investment

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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