Barter in Newtworks a Revived Form of Inter Firm Exchange
Barter in Newtworks a Revived Form of Inter Firm Exchange
Stephan Schrader
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Frequently, firms enter alliances after having identified areas of potential cooperation only vaguely hoping that once the network is established it will be less difficult to determine and realize specific barter possibilities. The alliance between Daimler Benz and Mitsubishi is a case in point (Sanger, 1990). When this alliance was set up in 1990, the firms merely agreed to cooperate, leaving to the individual business units the task of determining specific market skills and technologies to be... exchanged. In cases like this, the establishment of networks drives the emergence of barter transactions. Barter transactions, however, can also drive the establishment and stabilization of networks. Repeated interaction fosters trust (Axelrod, 1984), the formation of common interaction norms (Ullmann-Margalit, 1977), and the evolution of a shared 21 language (Hall, 1959), all of these supporting the establishment and stabilization of networks. In the very beginnings of the oil-exploration industry, firms exchanged on a one-to-one basis valuable geological and geophysical information, each exchange being independent of other interactions.
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