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Licensed Unlicensed Requires Authentication Published by De Gruyter July 20, 2007

Tax Differentials and the Segmentation of Networks of Cooperation in Oligopoly

Hassan Benchekroun and Denis Claude

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.

Published Online: 2007-7-20

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