In a dynamic optimisation model the profit maximising behaviour of a monopolist facing lagged adjustments of demand is investigated. It is shown that the long run equilibrium price differs from the static Cournot price. The monopolist sacrifices some of the long run profits in order to exploit...

Currently, the world petroleum market is facing attempts by petroleum exporting countries to extend their influence further downstream. The process of vertical integration is based on natural gas which accrues as a by-product of crude oil recovery. Gas can be used for downstream production, for...

In situations where the traditional instruments of trade policy are not available, protection for importcompeting industries can be given only indirectly. One of the candidates of giving indirect subsidies is environmental regulation. The competitiveness of a domestic industry can be improved by...