This paper analyses the steady-state industry configuration of an oligopoly composed of profit-seeking (PS) and environmentally socially responsible (ECSR) firms in an evolutionary setting. In the industry, an emission tax is levied and firms may invest in emission abatement technology to reduce...

This paper analyses the steady-state industry configuration of an oligopoly composed of profit-seeking (PS) and environmentally socially responsible (ECSR) firms in an evolutionary setting. In the industry, an emission tax is levied and firms may invest in emission abatement technology to reduce...

We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an environmental externality. We establish that the MQS bites only if the hedonic component of consumer preferences is sufficiently strong. Then, we illustrate an underlying tradeoff...

In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...

We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an environmental externality. We establish that the MQS bites only if the hedonic component of consumer preferences is sufficiently strong. Then, we illustrate an underlying tradeoff...

We extend the analysis carried out by Valletti (2000) by considering an environmental externality in a vertically differentiated duopoly where firms compete à la Cournot with fixed costs of quality improvement. We show that, if the weight of the external effect is high enough, the resulting...