This paper explores several aspects of the vertical relationship between an upstream firm and a number of downstream firms that are Cournot rivals relying on the inputs provided by the upstream firm. We address the following questions: (i) if the upstream firm can charge different prices to...

Favoritism in vertical relationship is a situation in which an upstream firm sets favorable exchange conditions to some agents at the expense of others. This paper explores the reason for, and direction of, favoritism in the vertical relationship between an upstream firm and a number of...

Deterring the formation or continuation of cartels is a major objective of antitrust policy. We develop a dynamic framework to characterize the compensation and deterrence properties of fines, based on the fact that cartel stability depends on the ability to prevent deviation, which itself...

This paper explores the effects of effluent regulatory activity on firm behavior in the pulp and paper industry in Ontario. The model uses instrumental variables to attempt to distinguish between that correlation between emission limits and emissions coming from regulatory capture and that...

We characterize the distortions in environmental liability sharing between firms and banks that the imperfect implementation of government policies implies. These distortions stem from three factors: the presence of moral hazard, the use of objective functions by firms and banks that differs...

Using a structural model of the interactions between governments, firms and insurance companies, we characterise the distortions in environmental liability sharing between firms and insurance companies that the imperfect implementation of government policies implies. These distortions stem from...

Afforestation is a cost-effective way for some countries to meet part of their commitments under the Kyoto Protocol and its eventual extensions. Credits for carbon sequestration can be mediated through markets for emissions permits. Both new and old forests are subject to pestilence and fire,...

It is possible to make a current valuation of the effects of carbon dioxide which tracks a valuation done under the metric of expected present value and also tracks realized values. The implementation of a carbon credit scheme based on green accounting could go as follows: L'évaluation des...

We use a real option approach to determine optimally when a social planner has to stop or resume logging in situations where an endangered species relies on forest habitat for its survival, and that habitat evolves stochastically. The model incorporates economic, ecological and social features,...

It has been observed that upon trading-off the costs and benefits of pollution control, profit-maximizing firms may choose not to invest their resources in pollution abatement since the expected penalty imposed by regulators falls considerably short of the investment costs. Regulators have...