ABSTRACT
Just where to draw the line between competition and cooperation among independent firms is a topic of perennial debate in the field of public policy towards private enterprise. US policy-makers have recently shifted that line substantially in the direction of cooperation, largely justifying the move with arguments to the effect that cooperation by rivals in research, development, and production will improve dynamic market performance without adversely affecting static market performance. Comparisons of US policy in this area with those of the European Union and Japan featured prominently in the discussion that led up to this decision.
