Phillips, Kerk; Lambson, Val - Econometric Society - 2004
consider both Bertrand competition and collusion among successful innovators. Surprisingly, the industry demand for R&D inputs … does not depend on the number of firms in the R&D sector if Bertrand competition ensues following ties. In contrast, demand … for R&D inputs is higher if ties are expected to result in collusion. In general equilibrium, Bertrand competition leads …