Revenue Sharing Joint Venture

One firm has a set of technologies and knowhow for a new product while the other contributes the necessary capital for setting.

Revenue sharing joint venture. It helps in developing a project when the parties enter into a joint venture. A revenue sharing agreement is an essential document to develop whenever two or more parties enter into a joint venture project together. Consider the scenario when two firms are setting up a joint venture. We distinguish two types of jvs depending on how individual resources determine the effective capacity of a jv.

Revenue sharing can exist as a profit sharing system that. We study strategic capacity investment problems in joint ventures jvs with fixed rate revenue sharing contracts. A revenue sharing agreement details the specific details as to how revenues from a joint venture will be shared between two or more parties.