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Is it Harmful to Allow partial Cooperation ?

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  • Paul Beaudry

    (Crest)

  • Pierre Cahuc

    (Crest)

  • Hubert Kempf

    (Crest)

Abstract

In economics, politics and society, examples abound in economics, politics and society where agents can enter partial cooperation schemes, i.e., they can collude with a subset of agents. Several contributions devoted to specific settings have claimed that such partial cooperation actually worsens welfare compared to the no-cooperation situation. Our paper assesses this view by highlighting the forces that lead to such results. We find that the nature of strategic spillovers is central to determining whether partial cooperation is bad. Our propositions are then applied to various examples as industry wage bargaining or local public goods. Copyright 2000 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 99-39.

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Date of creation: 1999
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Handle: RePEc:crs:wpaper:99-39

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Cited by:
  1. repec:dgr:uvatin:2010011 is not listed on IDEAS
  2. Leon Bettendorf & Albert van der Horst & Ruud de Mooij & Hendrik Vrijburg, 2009. "Corporate tax consolidation and enhanced cooperation in the European Union," CPB Discussion Paper 132, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Hendrik Vrijburg & Ruud A. de Mooij, 2010. "Enhanced Cooperation in an Asymmetric Model of Tax Competition," Tinbergen Institute Discussion Papers 10-011/3, Tinbergen Institute.
  4. Bo Sandemann Rasmussen, . "Partial vs. Global Coordination of Capital Income Tax Policies," Economics Working Papers 2001-3, School of Economics and Management, University of Aarhus.
  5. Yutao Han, 2013. "Who benefits from partial tax coordination?," CREA Discussion Paper Series 13-24, Center for Research in Economic Analysis, University of Luxembourg.
  6. Lina Mallozzi & Stef Tijs, 2012. "Stackelberg Assumption vs. Nash Assumption in Partially Cooperative Games," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(1), pages 5-13, March.
  7. Emmanuelle Taugourdeau & Jean-pierre Vidal, 2014. "The tax competition game revisited: When leadership may be optimal," Economics Bulletin, AccessEcon, vol. 34(1), pages 51-62.

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