ICML2025

Strategy Coopetition Explains the Emergence and Transience of In-Context Learning

Aaditya K. Singh, Ted Moskovitz, Sara Dragutinovic, Felix Hill, Stephanie C. Y. Chan, Andrew M. Saxe

Abstract

This research questions the determinants of a coopetition strategy. Why do competing companies commit to a "paradoxical" coopetition relationship? Previous research has sought to understand the mechanisms and determinants that drive companies to adopt "paradoxical" and "complex" relationships of competition and simultaneous cooperation. However, the majority of this research has been able to provide answers on the subject, even if piecemeal, always in specific contexts. This present research allows advancing elements of theoretical answers on this questioning, from a synthetic reading of the literature on coopetition. Companies adopt "paradoxical", "complex" and "counterintuitive" relationships of both cooperation and competition, defined as coopetition relationships, to cope with the complexity of the economic environment and institutional pressures for sharing resources and skills, and innovating. Finally, the representations, perceptions and affects of individuals in and between companies allow companies to engage in these types of relationships.