This paper contributes to the theoretical analysis of proportional import restraints, that is, restraints that are defined in terms of market shares (e.g., 10% of the market) rather than in terms of volume of imports (e.g., 200,000 automobiles per year). We show that an increase in the market...

In an extended version of d'Aspremont and Jacquemin's (1988) R&D competition model we find a region where the game is a prisoner's dilemma: firms still invest in R&D but they would obtain a higher profit by not investing at all. In a repeated version of the game, we prove that firms implicitly...

We investigate the possibility for two vertically related firms to at least partially collude on the wholesale price over an infinite horizon to mitigate or eliminate the effects of double marginalisation, thereby avoiding contracts which might not be enforceable. We characterise alternative...