On the likelihood of a prisoners' dilemma in a differentiated duopoly

Lambertini and Rossini claim that firms might produce undifferentiated prod ucts due to a prisoners' dilemma in product innovation. We revisit their mo del and show that if firms are more Likely to compete in homogeneous produc ts, then the occurrence of a prisoners' dilemma becomes less likely. (C) 19 99 Elsevier Science S.A. All rights reserved.