We study the nature of market competition in relation to stability of collusion in the infinitely repeated play of a twostage game of product innovation and market competition, and show that cooperation in giving R&D efforts is more easily sustained when firms compete in quantity than in price.
Poddar, S., & Saha, B. (2010). Product innovation and stability of collusion. Economics Bulletin, 30(2), 1392-1400.
This article was originally published in Economics Bulletin, volume 30, issue 2, in 2010.