@article{75fb539c9cdc4b40a3e1b17cc7c4e420,
title = "EMISSION TAXES, CLEAN TECHNOLOGY COOPERATION, AND PRODUCT MARKET COLLUSION: EXPERIMENTAL EVIDENCE",
abstract = "We use a laboratory experiment to study the link between cooperative research and development (R&D) in clean technology and collusion in a downstream product market in the presence of a time-consistent emissions tax. Such a tax creates additional interconnections between firms, in addition to the standard technological spillovers. Our results show a strong link between R&D cooperation and market collusion under symmetric R&D spillovers in a duopoly, but when the spillovers are asymmetric, R&D cooperation does not necessarily result in collusion. With symmetric spillovers, the link between R&D cooperation and collusion remains strong even in three- and four-firm industries. (JEL C90, L5, O30, Q55).",
author = "Yong, {Soo Keong} and Lana Friesen and Stuart McDonald",
note = "Funding Information: ∗The authors thank Kenan Kalayci, Marco Faravelli, and seminar participants at the Sogang University, the Fudan University, the Shanghai University of Finance and Economics, the fourth Annual International Workshop on Experimental Economics at the Xiamen University, and the 22nd Annual Conference of the European Association of Environmental and Resource Economists. The authors gratefully acknowledge research funding from the University of Queensland and the Global Change Institute, and thank Sigrid Suetens for sharing her z-Tree program. The insightful comments and suggestions by three anonymous referees and by Charles Mason have led to a much improved paper. Yong: Lecturer, International Business School Suzhou, Xi{\textquoteright}an Jiaotong-Liverpool University, Suzhou 215123, People{\textquoteright}s Republic of China. Phone +86 0512 88166532, Fax +86 0512 88161899, E-mail sk.yong@uqconnect.edu.au Friesen: Associate Professor, School of Economics, The Uni-versity of Queensland, Brisbane, QLD 4072, Australia. Phone +61 7 33656564, Fax +61 7 33657299, E-mail l.friesen@uq.edu.au McDonald: Associate Professor, Hanqing Advanced Institute of Economics and Finance, The Renmin Uni-versity of China, Beijing 100872, People{\textquoteright}s Republic of China. Phone +86 010-62511138, Fax +86 010 62511 343, E-mail smcdonald@ruc.edu.cn Economic Inquiry (ISSN 0095-2583) Vol. 56, No. 4, October 2018, 1950–1979 Funding Information: The authors thank Kenan Kalayci, Marco Faravelli, and seminar participants at the Sogang University, the Fudan University, the Shanghai University of Finance and Economics, the fourth Annual International Workshop on Experimental Economics at the Xiamen University, and the 22nd Annual Conference of the European Association of Environmental and Resource Economists. The authors gratefully acknowledge research funding from the University of Queensland and the Global Change Institute, and thank Sigrid Suetens for sharing her z?Tree program. The insightful comments and suggestions by three anonymous referees and by Charles Mason have led to a much improved paper. Publisher Copyright: {\textcopyright} 2018 Western Economic Association International",
year = "2018",
month = oct,
doi = "10.1111/ecin.12573",
language = "English",
volume = "56",
pages = "1950--1979",
journal = "Economic Inquiry",
issn = "0095-2583",
number = "4",
}