This article tests experimentally whether a high degree of collusion on advertisement expenditures facilitate tacit price collusion in duopoly markets. Two environments are tested, in which the size of the spillover between advertising expenditures is varied. The results show that the competitiveness of advertising and prices are significantly higher when the advertising spillover is higher tha...

We analyze the effects of a large place-based policy, subsidizing up to 50% investment costs manufacturing firms in East Germany after reunification. show that 1-percentage-point decrease subsidy rate leads 1% employment. document important spillovers for untreated sectors treated counties, counties connected via trade and local taxes, whereas we do not find on same labor market. policy is at l...

I study identification, estimation and inference for spillover effects in experiments where units’ outcomes may depend on the treatment assignments of other units within a group. show that commonly-used reduced-form linear-in-means regression identifies weighted sum with some negative weights, difference means between treated controls combination direct entering different signs. propose nonpara...