The objective of this article is to investigate the impact of research and development (R&D) spillovers on cartelization of industries characterized by differentiated products. For simplicity, we focus on the duopoly market in which firms compete according to the Stackelberg leadership model....

The objective of this paper is to investigate the impact of R&D cooperation on cartel formation in the product market. The R&D investments that precede the production process are aimed at the reduction of the unit manufacturing costs, and could create positive externalities for the potential...

In this paper we investigate how capacity adjustment costs affect a firm¡¯s response to demand uncertainty. We first characterize the pattern of optimal capacity adjustment for a monopolistic firm and find that capacity behaves as a stabilizer for the firm¡¯s output. For duopolistic firms...