ITEM METADATA RECORD
Title: Collusion through joint R&D: An empirical assessment
Authors: Duso, Tomaso ×
Röller, Lars-Hendrik
Seldeslachts, Jo #
Issue Date: 2014
Series Title: Review of Economics and Statistics vol:96 issue:2 pages:349-370
Abstract: This paper tests whether upstream R&D cooperation leads to downstream collusion. We show that a sufficient condition for identifying collusive behavior is a decline in the market share of firms participating in research joint ventures (RJVs). Using information from the U.S. National Cooperation Research Act, we estimate a market share equation correcting for the endogeneity of RJV participation and R&D expenditures. We find robust evidence that large networks between direct competitors, created through firms being members in several RJVs at the same time, are conducive to collusive outcomes in the product market that reduce consumer welfare. By contrast, RJVs among noncompetitors are efficiency enhancing.
ISSN: 0034-6535
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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