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Does R&D cooperation facilitate price collusion? An experiment

Listed author(s):
  • Suetens, Sigrid

We 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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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 66 (2008)
Issue (Month): 3-4 (June)
Pages: 822-836

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Handle: RePEc:eee:jeborg:v:66:y:2008:i:3-4:p:822-836
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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