COLUSIóN EN UN DUOPOLIO DE BERTRAND CON RENDIMIENTOS DECRECIENTES Y PRODUCTOS DIFERENCIADOS

we study cartel stability in a differentiated price-setting duopoly with returns to scale. we show that a cartel may be equally stable in the presence of lower differentiation, provided that the decreasing returns parameter is high. in addition we demonstrate that for a given factor of discount, there are technologies that can have decreasing returns to scale where the cartel always is stable independent of the differentiation degree.