Domestic and international research joint ventures: The effect of collusion

- We analyze the effect of research joint ventures (RJVs) on consumer welfare.
- We consider an international context when collusion can occur.
- The recent literature shows that RJVs with collusion harm consumers.
- However, international RJVs with collusion might be beneficial for consumers.
- Antitrust authorities should be more benevolent with international RJVs.

We analyze the effect of research joint ventures (RJVs) on consumer welfare in an international context when collusion can occur. Our results suggest that antitrust authorities should distinguish between domestic and international RJVs and be more benevolent with international RJVs.