The Optimal Contract for Complemented Knowledge Sharing between Partners in Knowledge Alliance in the Competitive Market

This paper uses the game theory to analyze a practical problem of encouraging complemented knowledge sharing between knowledge owners in the competitive market, and draw the following conclusion through analyzing the characteristics of the optimal contract:In the competitive market, the benefit of knowledge partners varies because the proportion of contribution of the total outcome from partners' devotion to technology and knowledge varies. In equilibrium the yield of one partner equals to the contribution rate of the individual knowledge to total outcome, namely the price of the technology, which is often realized as the payment of the technology in the profit distribution. The yield of the other part equals to its contribution rate of field knowledge and its market ability. The optimal knowledge sharing between alliance partners and maximal income could be achieved based on the optimal yield. Lower yield which under the contribution rate will lead to the risk of insufficient knowledge sharing.