RJVs and Price Collusione under Endogenous Product Differentiation
AbstractThe authors characterize the interplay between firms' decisions in terms of either horizontal or vertical product differentiation and their ensuing price behavior, be that collusive or not. They prove the existence of a non-monotone relationship between firms' decisions at the development stage and their intertemporal preferences as well as consumers' willingness to pay. Moreover, the authors prove that firms' R&D decisions have no bearings on collusion stability in the vertical differentiation setting, while cooperation in the development stage destabilizes collusion in the horizontal differentiation setting.
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Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 295.
Date of creation: Jun 1997
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Other versions of this item:
- Lambertini, L. & Poddar, S. & Sasaki, D., 1998. "RJVs and Price collusion Under Endogenous Product Differentiation," Department of Economics - Working Papers Series 666, The University of Melbourne.
- Luca Lambertini & Sougata Poddar & Dan Sasaki, 1997. "RJVs and Price Collusion under Endogenous Product Differentiation," Discussion Papers 97-09, University of Copenhagen. Department of Economics.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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