Arbeitspapier
The Environmental Impact of Bertrand and Cournot Duopolies. A Cautionary Note
We compare a Bertrand with a Cournot duopoly in a setting where production is polluting and exploits natural resources, and firms bear convex production costs. We adopt Dastidar's (1995) approach, yielding a continuum of Bertrand-Nash equilibria ranging above marginal cost pricing also, to show that softening price competition may lead to a lower output production in a Bertrand rather than a Cournot industry. The market structure bringing about the lowest output determines the highest social welfare, given the fact that the negative environmental effects of production more than offset the gain in consumer surplus.
- Language
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Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 812
- Classification
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Wirtschaft
Oligopoly and Other Imperfect Markets
Economics of Regulation
Environmental Economics: Technological Innovation
Environmental Economics: Government Policy
- Event
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Geistige Schöpfung
- (who)
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Lambertini, Luca
Tampieri, Alessandro
- Event
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Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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2012
- DOI
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doi:10.6092/unibo/amsacta/4206
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Lambertini, Luca
- Tampieri, Alessandro
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2012
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Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
Efficient Horizontal Mergers in Polluting Industries with Cournot Competition
On Globally Optimal Punishments in the Repeated Cournot Game
On the Optimal Number of Firms in the Commons: Cournot vs Bertrand
Delegation vs Cost-Reducing R&D in a Cournot Duopoly
On the non-neutrality of profit taxation in a Cournot oligopoly with environmental effects
Low-Quality Leadership in a Vertically Differentiated Duopoly with Cournot Competition
Cartel Stability Under Vertical Differentiation and Convex costs: Bertrand vs Cournot
Bertrand versus Cournot with Convex Variable Costs
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
Cournot Vs Stackelberg Equilibria With Entrepreneurial and Labour Managed Firms
Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
Efficient Horizontal Mergers in Polluting Industries with Cournot Competition
On Globally Optimal Punishments in the Repeated Cournot Game
On the Optimal Number of Firms in the Commons: Cournot vs Bertrand
Delegation vs Cost-Reducing R&D in a Cournot Duopoly
On the non-neutrality of profit taxation in a Cournot oligopoly with environmental effects
Low-Quality Leadership in a Vertically Differentiated Duopoly with Cournot Competition
Cartel Stability Under Vertical Differentiation and Convex costs: Bertrand vs Cournot
Bertrand versus Cournot with Convex Variable Costs
Ranking Bertrand, Cournot and Supply Function Equilibria in Oligopoly
Cournot Vs Stackelberg Equilibria With Entrepreneurial and Labour Managed Firms
Minimum Quality Standard Under Cournot Competition and Pollution
Cournot Retrouvé under Price or Supply Function Competition
Efficient Horizontal Mergers in Polluting Industries with Cournot Competition
On Globally Optimal Punishments in the Repeated Cournot Game
On the Optimal Number of Firms in the Commons: Cournot vs Bertrand
Delegation vs Cost-Reducing R&D in a Cournot Duopoly
On the non-neutrality of profit taxation in a Cournot oligopoly with environmental effects