PAUWELS, WILFRIED; KORT, PETER M.; VANHAECHT, EVE - In: International Game Theory Review (IGTR) 16 (2014) 03, pp. 1450003-1
This paper analyzes a semicollusive, differentiated duopoly. Firms first compete in cost reducing R&D and then cooperate on the output market. The sharing of the joint profit on the output market is modeled as a Nash bargaining game. We study an asymmetric setting in which one firm has a lower...