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Tax Differentials and the Segmentation of Networks of Cooperation in Oligopoly

Hassan Benchekroun () and Denis Claude ()

The B.E. Journal of Theoretical Economics, 2007, vol. 7, issue 1, 1-11

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.

Date: 2007
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