This article is based on my previous work, “Shifting Advantage: A Game-Theoretical Model of International Collaboration in Advanced Technology,” Ph.D. diss., Massachusetts Institute of Technology, Cambridge, 1990. An earlier version was presented at the annual meeting of the American Political Science Association, August 1990, San Francisco. The research and writing were supported by a 1987–88 Robert Bosch Foundation Fellowship in the Federal Republic of Germany and a 1988–89 Ford Foundation Fellowship in European Society and Western Security at the Harvard Center for International Affairs. For criticisms and suggestions, I am grateful to Barry O'Neill, Richard Samuels, Ethan Kapstein, Howard Raiffa, Stephen Krasner, and two anonymous reviewers.

1. This study makes a clear distinction between the terms “collaboration” and “cooperation,” which are often used interchangeably. Whereas “cooperation” has a positive normative connotation, “collaboration” is used here in a value-neutral sense to refer to any functional activity involving the active participation of two or more autonomous actors.

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25. Since the players calculate their payoffs before the actual distribution of gains has taken place, they must make decisions on the basis of limited information.

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28. As discussed in the empirical section, the technological capabilities of two firms in a given area can be operationalized on an ordinal scale from 1 to 5. Thus, if the weaker player has a capabilities level of 2 and the stronger player a capabilities level of 4, the value of x will be 2/4, or 0.5.

29. The sensitivity coefficient α in the PAR model is similar to what Grieco calls coefficient κ, or the “coefficient for a state's sensitivity to gaps in payoffs.” According to Grieco, the level of κ is increased when (1) the partner is a long-term adversary rather than a long-term ally; (2) the issue involves security rather than economics; (3) the state's relative power has been on the decline rather than on the rise; (4) payoffs in the particular issue-area are readily convertible into new capabilities within that issue-area; and (5) capabilities and the influence associated with them are readily transferable to other issue-areas. See Grieco, , “Anarchy and the Limits of Cooperation,” p. 501.Google Scholar

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32. The relationship between the stronger player's net payoff and the size of the sensitivity coefficient can be demonstrated by calculating the optimum of the net payoff curve as a function of x. Differentiate y = κx – αe ^x with respect to x to obtain κ – αe ^x, and set the latter equal to 0. Thus, e ^x = κ/α. Taking the natural log of both sides gives x = In (κ/α), which is the apex of the curve. This formula means that as the value of α increases, the optimum of the net payoff curve decreases.

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