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Suppose markets and firms are connected in a bi-partite network, where firms can only supply to the markets they are connected to. Firms compete a la Cournot and decide how much to supply to each market they have a link with. We assume that markets have linear demand functions and firms have...
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. Within this framework I explore the price behaviour of groups of colluding firms and their incentive to either pruning or …
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differentiation when customers are concerned about environmental aspects of the good. We use the spatial duopoly model to determine … stage each firm chooses its price. The unique equilibrium prices and market shares are affected by consumer awareness of the …
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Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final …
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In this paper we examine an alternative policy scenario, where governments allow polluting firms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting firms do not have an...
Persistent link: https://www.econbiz.de/10008699662
affected by tacit collusion or price manipulation when the corresponding polluting product market is oligopolistic. We analyze … collude for lobbying prices up. However, incentives for manipulating the price of permits up appear if there is an initial … increasing with the amount of permits allocated to the leader. Moreover, the changes for price manipulation increase with those …
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