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Does R&D cooperation facilitate price collusion? An experiment

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Suetens, Sigrid

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Abstract 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.
Keywords cartel; research and development; cooperation; laboratory experiment
Classification Research, Research Organization
Method theory formation
Document language English
Publication Year 2008
Page/Pages p. 822-836
Journal Journal of Economic Behavior & Organization, 66 (2008) 3-4
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)