Semi-collusion and innovation: friends or foes?

It is commonly held that firms engaging in collusive activities adversely affect firms' R&D incentives and social welfare. With a stochastic non-tournament R&D competition, we argue that this pessimistic view does not necessarily hold when firms collude in production but compete in other non-product...

Descripción completa

Detalles Bibliográficos
Publicado en:Oxford Economic Papers Vol. 78; no. 3; pp. 915 - 935
Autores principales: Basak, Debasmita, Mukherjee, Arijit
Formato: Artículo
Publicado: Oxford University Press / USA Jul2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
fields @attributes:
  recordID: 1
pdfLink:
plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=196419364&site=ehost-live
header:
  @attributes:
    shortDbName: ssf
    uiTerm: 196419364
    longDbName: Social Sciences Full Text (H.W. Wilson)
    uiTag: AN
  controlInfo:
    bkinfo:
    jinfo:
      jid:
        00307653
        OXE
      jtl: Oxford Economic Papers
      issn: 00307653
      maglogo: N
    pubinfo:
      dt: Jul2026
      vid: 78
      iid: 3
      pid: 622
      pub: Oxford University Press / USA
    artinfo:
      ui:
        196419364
        10.1093/oep/gpag022
      ppf: 915
      ppct: 20
      formats:
      tig:
        atl: Semi-collusion and innovation: friends or foes?
      aug:
        au:
          Basak, Debasmita
          Mukherjee, Arijit
        affil: Department of Industrial Economics, Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, United Kingdom
      su:
        Welfare economics
        Economic competition
        Collusion
        New product development
        Process optimization
      sug:
        subj:
          Welfare economics
          Economic competition
          Marketing Consulting Services
          Collusion
          New product development
          Process optimization
      keyword:
        collusion
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        inLanguage:en
        L10
        L13
        O31
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag022
        stochastic R&D
        welfare
        collusion
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        inLanguage:en
        L10
        L13
        O31
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/oep/gpag022
        stochastic R&D
        welfare
      ab: It is commonly held that firms engaging in collusive activities adversely affect firms' R&D incentives and social welfare. With a stochastic non-tournament R&D competition, we argue that this pessimistic view does not necessarily hold when firms collude in production but compete in other non-production activities, such as R&D. This phenomenon is known as semi-collusion. Adopting a unified R&D model that encompasses both product and process R&D, we show that if the probability of success in R&D is relatively high (low), semi-collusion may provide higher (lower) innovation incentives compared to a non-cooperative setting when the firms invest in process innovation. The innovation incentives are strictly higher under semi-collusion when the firms invest in product innovation. Additionally, we find that regardless of the type of innovation (process or product R&D), semi-collusion may improve social welfare when the firms compete in prices and the goods are close substitutes.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
    refInfo:
    copyright:
      @attributes:
        flag: N
    holdings:
      @attributes:
        islocal: N