Dragone, Davide; Lambertini, Luca; Palestini, Arsen - In: Strategic Behavior and the Environment 4 (2014) 1, pp. 15-40
We investigate the possibility of using public firms to regulate polluting emissions in a Cournot oligopoly where production generates pollution and public firms are less efficient than private ones. In a differential game we compare (i) the Markov-Perfect Nash equilibrium under social planning;...