This paper uses a strategic trade policy model to analyze the welfare effects from allowing cooperation in R&D when firms compete in a price-setting game in the product market. A policy game between two governments is analyzed, where each government chooses a particular cooperative R&D policy in...

Economists at the Federal Trade Commission pursue the agency’s competition and consumer protection missions. In this year’s essay, with respect to antitrust we discuss the analysis that is used in two areas where the Commission has recently been active: physician combinations and standard...