In a horizontal product differentiation model, we show conditions under which Cournot competition (which implies some form of price coordination) allows a larger number of firms to operate in the industry than Bertrand competition. In turn, total welfare is higher under Cournot than under...

D'Aspremont and Jacquemin's (1988) model is extended to study alternative configurations of research agreements. Analogies with the cartel literature are found: under certain conditions on spillover values, outsiders benefit more than participants in R&D agreements. If cooperative spillovers are...