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Joint Venture for Product Innovation and Cartel Stability under Vertical Di ¤ erentiation
| Content Provider | Semantic Scholar |
|---|---|
| Author | Iori, Cristina Lambertini, Luca |
| Copyright Year | 2000 |
| Abstract | We describe a vertically di¤erentiated market where ...rms choose between activating either independent ventures leading to distinct product qualities, or a joint venture for a single quality. Then, ...rms either repeat the one-shot Nash equilibrium forever, or behave collusively, according to discount factors. We prove that there exists a parameter region where the joint venture makes it more di¢cult for ...rms to sustain collusive behaviour, as compared to independent ventures. Therefore, public policies towards R&D behaviour should be designed so as not to become inconsistent with the pro-competitive attitude characterising the current legislation on marketing practices. J.E.L. classi...cation: C72, D43, L13 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.dse.unibo.it/wp/385.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Cations Diabetes Insipidus Kind of quantity - Equilibrium Nash equilibrium Population Parameter Public Policy Root Mean Square |
| Content Type | Text |
| Resource Type | Article |