Advantageous Semi-Collusion Revisited: A Note

Kai Zhao

Working Papers from HAL

Abstract: In this note we reconsider the paper of Brod and Shivakumar (1999), published in the Journal of Industrial Economics, who analyze a twostage model in which the firms compete in two dimensions and examine the effect of semi-collusion when the non-production activity is R&D. They shed light on the fact that in the presence of spillovers, firms and consumers could be both better off, peradventure both worse off, by a semi-collusive production cartel. We are motivated to study their setup by this fascinating outcome. Trying to approach the in-depth analysis and to understand the driving forces of this result, we find however that the findings of Brod and Shivakumar (1999) are disputable. By focusing upon their calculative errors, we show how the correct solution can be obtained, furthermore, we explain why the main propositions in their paper don't hold.

Keywords: R&D; semi-collusion; spillover; product differentiation (search for similar items in EconPapers)
Date: 2011-02
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00856136v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00856136v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-00856136

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().