>My top management would like an incentive/accounting system which satisfies
>both teams, and gets both
>teams to cooperate more fully, and to use the advantages of each more fully.
>Is there any micro- / game-theory analysis on such internal business

Lots! But you would have to be more specific about the nature of the product, how 
output is evaluated, how contracts are secured, what the nature of cooperation between 
the two groups is etc. before anyone would know how to apply it. Also, some people get 
paid for doing this sort of thing and you might keep in mind the old line "you get 
what you pay for."  - - Bill Dickens

William T. Dickens
The Brookings Institution
1775 Massachusetts Avenue, NW
Washington, DC 20036
Phone: (202) 797-6113
FAX:     (202) 797-6181
AOL IM: wtdickens

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