In the presence of network externalities, we compare the stability of collusion under Bertrand and Cournot duopoly with differentiated products. Contrast to previous studies, we show that (i) firms have stronger incentive to collude under Bertrand competition than under Cournot competition in...

Enforcement agencies have a relatively good understanding of how to measure the loss of price competition caused by merger. However, when firms compete in multiple dimensions, merger effects are not well understood. In this paper, we study mergers in industries where firms compete by setting...

Although common belief is that welfare is higher under Bertrand competition compared to Cournot competition, we show that this may not be the case in the presence of passive cross-ownership, which is widely observed in the real world. In a symmetric duopoly, we show that while the profits are...