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Tax Differentials and the Segmentation of Networks of Cooperation in Oligopoly

Author

Listed:
  • Benchekroun Hassan

    (Department of Economics, CIREQ, McGill University, hassan.benchekroun@mcgill.ca)

  • Claude Denis

    (HEC Montreal & Gerad, denis_claude_economics@yahoo.fr)

Abstract

This paper studies the effects of uncoordinated environmental tax policies on firms' incentives to form bilateral R&D collaborations. It is shown that the complete network is pair-wise stable for small differences in the taxation of environmental emissions. Larger tax differentials may induce firms to abandon all their international collaborations.

Suggested Citation

  • Benchekroun Hassan & Claude Denis, 2007. "Tax Differentials and the Segmentation of Networks of Cooperation in Oligopoly," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-11, July.
    • Handle: RePEc:bpj:bejtec:v:7:y:2007:i:1:n:26
    DOI: 10.2202/1935-1704.1316
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    References listed on IDEAS

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    1. Goyal, Sanjeev & Joshi, Sumit, 2004. "Erratum to "Networks of collaboration in oligopoly": [Games Econ. Behav. 43 (1) (2003) 57-85]," Games and Economic Behavior, Elsevier, vol. 46(1), pages 219-219, January.
    2. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
    3. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
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    6. Adam B. Jaffe & Karen Palmer, 1997. "Environmental Regulation And Innovation: A Panel Data Study," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 610-619, November.
    7. Benchekroun, Hassan, 2003. "Unilateral production restrictions in a dynamic duopoly," Journal of Economic Theory, Elsevier, vol. 111(2), pages 214-239, August.
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    9. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
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    12. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    13. Golombek Rolf & Hoel Michael, 2004. "Unilateral Emission Reductions and Cross-Country Technology Spillovers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(2), pages 1-27, September.
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    Cited by:

    1. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    2. repec:hal:spmain:info:hdl:2441/5qr7f0k4sk8rbq4do5u6v70rm0 is not listed on IDEAS
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    4. Francesco Pasimeni & Tommaso Ciarli, 2018. "Diffusion of Shared Goods in Consumer Coalitions. An Agent-Based Model," SPRU Working Paper Series 2018-24, SPRU - Science Policy Research Unit, University of Sussex Business School.
    5. repec:hal:spmain:info:hdl:2441/1nlv566svi86iqtetenms15tc4 is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/1nlv566svi86iqtetenms15tc4 is not listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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