Quirmbach, Herman C. - In: RAND Journal of Economics 24 (1993) 2, pp. 157-197
Anticipated postinnovation collusion encourages R&D effort, but realized collusion later yields deadweight losses. In balancing this tradeoff, Bertrand industries sometimes outperform Cournot; sometimes they do not. Both usually outperform perfectly collusive industries. The optimal level of...