Alliance dynamics through real options: The case of an alliance between competing pharmaceutical companies

This paper aims to better understand the dynamic aspects of strategic alliances between competitors, by relying on both the real options approach and the system dynamics approach. It raises the following question: what are the behavioral dynamics of real options in alliances? The systemic qualitative model we built from the study of an alliance formed by two competing firms around an R&D project revealed three sets of feedback structures (the...