Analysis of Multinational Strategy Alliances with Game Theory

Multinational strategy alliances avoid competitions of direct export by supply and distribution agreements. They do not share stocks but keep a competitive relation in cooperation. The forming processes of combative export equilibriumand cooperative alliance equilibriumofmultinational enterprises are analyzed dynamicallywith game theory. Two kinds of influences of equilibrium conditions on the variation of market prices, output level and social welfare are clarified. The preconditions for an international alliance to be an effective economic organization are deduced.