Tax Differentials and the Segmentation of Networks of Cooperation in Oligopoly
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 break all their international collaborations.
|Date of creation:||2006|
|Date of revision:|
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