Does R&D cooperation facilitate price collusion? An experiment
AbstractWe examine in a laboratory experiment whether R&D cooperation facilitates tacit price collusion. For two scenarios of technological spillovers, a baseline treatment without binding contract possibilities and a contract treatment where it is possible to credibly commit to an R&D contract, are run. We find that the degree of price collusion in the contract treatments is significantly higher in periods where R&D contracts are made than in periods without contracts, and than in the baseline treatments.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Behavior & Organization.
Volume (Year): 66 (2008)
Issue (Month): 3-4 (June)
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Web page: http://www.elsevier.com/locate/jebo
Other versions of this item:
- Suetens, S., 2003. "Does R&D Cooperation Facilitate Price Collusion? An Experiment," Discussion Paper 2003-99, Tilburg University, Center for Economic Research.
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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