In alliance formation, the question of whether to cooperate or not cooperate is essentially answered by whether a firm goes the route of market transactions/acquisitions or forms an alliance.

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Yes, in alliance formation, the decision to cooperate or not is influenced by whether the firm chooses to enter into a market transaction/acquisition or opt for forming an alliance. Collaboration through alliances involves sharing resources, knowledge or capabilities which can lead to mutual benefit, whereas market transactions/acquisitions are competitive and typically result in a winner-takes-all outcome.

In Alliance Formation, the Question of Whether to Cooperate or Not