Mechanism of R&D network formation based on a network embeddedness game model

This paper explains the mechanism of R&D network formation based on a game model of network embeddedness.To describe the game relationship between a new member and an original R&D network,this game model is set up by introducing three factors:R&D efficiency of the new member,asymmetric information,and trust.By solving the game model,this paper analyzes their impact on the level of embeddedness and transaction cost within the Network.Study results show that,during the formation of an R&D network,low efficiency and asymmetric information will do harm to the level of embeddedness and raise the transaction cost,while trust will have a complicated impact on them because of the probability of misplaced-trust.