We consider the efficiency of Cournot and Bertrand equilibria in a duopoly with substitutable goods where firms invest … in process R&D. Under Cournot competition firms always invest more in R&D than under Bertrand competition. More … importantly, Cournot competition yields lower prices than Bertrand competition when the R&D production process is efficient, when …

loss that arises from more intense market competition: the low-cost firms’ profits may indeed increase with the number of … Ford’s strategy of disclosing its know-how publicly and extensively at the beginning of the 20th century. -- Competition …

loss that arises from more intense market competition: the low-cost firms' profits may indeed increase with the number of …